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Oklahoma City, OK (August 2, 2019) – On July 30, 2019, a securities class action lawsuit was filed in the United States District Court for the Eastern District of Virginia against GTT Communications, Inc. (NYSE: GTT). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 26, 2018 through July 1, 2019. More specifically, the complaint alleges that throughout the Class Period, GTT assured investors that it had conducted extensive due diligence on Interoute, and the acquisition was a natural strategic fit for GTT—that the two companies “fit together almost hand in glove.” After the deal closed, GTT assured investors that Interoute’s integration into the company was “on track” and “not as complex” as many of the company’s previous integrations.
As reported by GTT on May 8, 2019, GTT disclosed a larger than expected loss for the first quarter of 2019, including a sequential decline in revenues. GTT blamed its poor performance on a host of issues with the Interoute integration, including migrating legacy systems into GTT’s management database, discrepancies with Interoute’s billing systems, and a poor salesforce. GTT further disclosed that shortly before the acquisition, Interoute had made a strategic shift to sell cloud services that deviated from GTT’s strategy of focusing exclusively on cloud networking. As a result of these disclosures, GTT’s stock price plummeted 17.5% on May 8, 2019, and continued to fall the following day, for a two-day decline of over 25%.
Plaintiff seeks to recover damages on behalf of all GTT Communications, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, September 30, 2019 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org