SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that several class action lawsuits have been filed on behalf of purchasers of Pareteum Corporation (NASDAQ:TEUM) securities during various time periods, the longest of which is December 14, 2017 to October 21, 2019 (the “Class Period”). The first-filed cases are pending in two courts: DeMarco v. Pareteum Corp., No. 1:19-cv-05949 (E.D.N.Y), and O’Brien v. Pareteum Corp., No. 1:19-cv-09767 (S.D.N.Y.). The Pareteum class action lawsuits charge Pareteum and several of its executive officers with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Pareteum securities during the Class Period to seek appointment as lead plaintiff in the Pareteum class action lawsuits. A lead plaintiff acts on behalf of all other class members in directing the Pareteum class action lawsuits. The lead plaintiff can select a law firm of its choice to litigate the Pareteum class action lawsuits. An investor’s ability to share in any potential future recovery of the Pareteum class action lawsuits is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Pareteum class action lawsuits or have questions concerning your rights regarding the Pareteum class action lawsuits, please visit our website by clicking here or contact Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. Lead plaintiff motions for the Pareteum class action lawsuits must be filed with the court no later than December 23, 2019.
Pareteum operates a communications cloud services platform in Europe and internationally. The complaints allege defendants misrepresented Pareteum as a “rapidly growing Cloud Communications Platform company” that was poised for exponential growth due to the Company’s involvement in new industries, such as block chain, customer wins, a rising “36-month contract revenue backlog,” and effective contract conversion rates, when in truth none of that was true. The complaints further allege that, unbeknownst to investors and contrary to defendants’ statements, Pareteum contracted with either fake entities, related third parties, or companies so small they had no chance of ever satisfying the value defendants assigned to their contracts. Moreover, throughout the Class Period, defendants violated Generally Accepted Accounting Principles by prematurely recognizing revenues and inflating accounts receivable.
The truth began emerging through a series of disclosures occurring between June 7, 2019 and October 21, 2019, when the Company announced that it would restate its consolidated financial statements as of and for the full year ended December 31, 2018, and interim periods ended March 31, 2019 and June 30, 2019. As a result of these disclosures, the value of Pareteum stock has consistently decreased, damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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Robbins Geller Rudman & Dowd LLP
Brian Cochran, 800-449-4900
[email protected]
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