NEW YORK, Nov. 18, 2019 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of Pareteum Corporation ("Pareteum" or the "Company") (NASDAQ: TEUM). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Pareteum and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On June 7, 2019, Marcus Aurelius Value ("Aurelius Value") published a report questioning Pareteum's accounting regarding backlog, backlog conversion rates, and receivables. On this news, the Company's stock price fell $0.83 per share, or over 24%, to close at $2.58 per share on June 7, 2019.
Then, on June 25, 2019, Viceroy Research Group ("Viceroy") published a report that alleged further accounting discrepancies related to several sources of "uncollectable" revenue, concluding that Pareteum's "total revenue is overstated by 42%." On this news, Pareteum's stock price fell $0.51 per share, or over 20%, to close at $2.00 per share on June 26, 2019.
On October 15, 2019, Pareteum announced that Chief Operating Officer Denis McCarthy was leaving the Company. McCarthy had maintained the Company's 36-month contractual revenue backlog spreadsheets and analysis that were scrutinized by the Aurelius Value and Viceroy reports. On this news, Pareteum's stock price fell $0.36 per share over three consecutive trading sessions to close at $0.83 per share on October 17, 2019.
Finally, on October 21, 2019, after the market closed, Pareteum disclosed that certain revenues recognized during 2018 and 2019 should not have been recorded during that period and that, as a result, the Company would restate its previously issued 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. On this news, Pareteum's stock price fell $0.44 per share, or nearly 60%, to close at $0.30 per share on October 22, 2019.
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.
Robert S. Willoughby
888-476-6529 ext. 9980
SOURCE Pomerantz LLP