[May 16, 2018] |
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SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholder with Losses on their Investment in Synacor, Inc. of Class Action Lawsuit and Upcoming Deadline - SYNC
Pomerantz LLP announces that a class action lawsuit has been filed
against Synacor (News - Alert), Inc. ("Synacor" or the "Company") (NASDAQ: SYNC) and
certain of its officers. The class action, filed in United States
District Court, Southern District of New York, and docketed under
18-cv-02979, is on behalf of a class consisting of investors who
purchased or otherwise acquired Synacor securities between May 4, 2016
and March 15, 2018, both dates inclusive (the "Class Period"), seeking
to recover damages caused by Defendants' violations of the federal
securities laws and to pursue remedies under Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5
promulgated thereunder, against the Company and certain of its top
officials.
If you are a shareholder who purchased Synacor securities between May 4,
2016, and March 15, 2018, both dates inclusive, you have until June 4,
2018, to ask the Court to appoint you as Lead Plaintiff for the class. A
copy of the Complaint can be obtained at www.pomerantzlaw.com.
To discuss this action, contact Robert S. Willoughby at [email protected]
or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who
inquire by e-mail are encouraged to include their mailing address,
telephone number, and the number of shares purchased.
[Clik
here to join this class action]
Synacor operates as a technology development, multiplatform services,
and revenue partner for video, Internet, and communications providers,
as well as device manufacturers, governments, and enterprises.
On May 4, 2016, Synacor announced that it had secured a three-year
contract to host web and mobile services for AT&T (News - Alert) Inc. ("AT&T" and the
"AT&T Contract", respectively).
The Complaint alleges that throughout the Class Period, Defendants made
materially false and misleading statements regarding the Company's
business, operational and compliance policies. Specifically, Defendants
made false and/or misleading statements and/or failed to disclose that:
(i) Synacor was unlikely to receive significant revenues from the AT&T
Contract until 2018; (ii) as such, the Company's revenue forecasts
issued during the Class Period were materially false and misleading; and
(iii) as a result of the foregoing, Synacor shares traded at
artificially inflated prices during the Class Period, and class members
suffered significant losses and damages.
On August 9, 2017, post-market, Synacor issued a press release entitled
"Synacor Exceeds Second-Quarter 2017 Financial Guidance; Remains on Path
to '3/30/300,'" announcing its financial results for the quarter ended
June 30, 2017. The press release stated in relevant part: "[T]he joint
AT&T-Synacor team has made the strategic decision to prioritize portal
engagement right now over monetization. We are seeing the results of
this focus in deeper engagement metrics. We are already generating
revenue from this new consumer experience, but we expect that additional
monetization tactics will be turned on at a more deliberate pace, which
will result in a longer ramp to full monetization. As a result, a
significant portion of the revenue that we were expecting in Q3 and Q4
this year is delayed to 2018, and we are adjusting our financial
guidance for 2017 accordingly. We believe that this engagement-focused
strategy ultimately leads to a stronger, more sustainable business,"
concluded Bhise.
On this news, Synacor's share price fell $1.15, or 32.39%, to close at
$2.40 on August 10, 2017.
On March 15, 2018, post-market, Synacor held a conference call with
analysts and investors to discuss the Company's fourth-quarter earnings.
During the call, Defendant Bhise discussed the shortcomings of the AT&T
contract.
On this news, Synacor's share price fell $0.30, or 14.63%, to close at
$1.75 on March 16, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and
Paris, is acknowledged as one of the premier firms in the areas of
corporate, securities, and antitrust class litigation. Founded by the
late Abraham L. Pomerantz, known as the dean of the class action bar,
the Pomerantz Firm pioneered the field of securities class actions.
Today, more than 80 years later, the Pomerantz Firm continues in the
tradition he established, fighting for the rights of the victims of
securities fraud, breaches of fiduciary duty, and corporate misconduct.
The Firm has recovered numerous multimillion-dollar damages awards on
behalf of class members. See www.pomerantzlaw.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180516006241/en/
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