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New Federal Securities Cases

Frontier Communications Corporation

A class action lawsuit has been filed in the United States District Court for the District of Connecticut against Frontier Communications Corporation ("Frontier" or the "Company") (NASDAQ: FTR), on behalf of investors who purchased or otherwise acquired Frontier securities during the period from April 1, 2016 through May 2, 2017 (the "Class Period").

Frontier provides communications services in the United States, including broadband, video, and voice services

The lawsuit alleges that throughout the Class Period, Defendants failed to disclose that the Company acquired a substantial number of non-paying accounts as part of its acquisition of the wireline operations of Verizon Communications, Inc.

On April 1, 2016, Frontier acquired Verizon's wireless operations in California, Texas, and Florida for $10.5 billion in cash and assumed debt. Throughout the Class Period, defendants failed to disclose that: (1) the Company acquired a substantial number of non-paying accounts through the acquisition, and (2) as a result, the Company would have to write off amounts from accounts receivable associated with those accounts.

On February 27, 2017, Frontier disclosed a net loss of $80 million for Q4 2016 stating that its results were impacted by the "resolution of non-paying acquired CTF accounts." On that same day, in a Company conference call, the CEO stated that the Company had been working through the account cleanup process since July 20, 2016, and began disconnecting non-paying accounts in August 2016 continuing through Q1 2017.

On this news, Frontier's stock price fell from $3.29 to $2.93 per share on February 28, 2017, damaging investors.

Then, on May 2, 2017, Frontier reported a Q1 2017 net loss of $75 million and a 1st quarter revenue decline of $53 million. On that same day, in a Company conference call, the CEO stated that approximately $16 million of the revenue decline was a result of the cleanup of CTF non-paying accounts and the automation of legacy non-pay disconnects. On this news, Frontier's stock price fell from $1.93 to $1.61 per share on May 3, 2017, further damaging investors.

If you acquired Frontier securities during the Class Period, you may, no later than November 27, 2017, request the court to appoint you lead plaintiff of the class. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions that could affect the overall recovery for class members, including decisions concerning settlement.

If you are a current or former Frontier shareholder and wish to obtain additional information, please fill out the contact form at the link below.


Investigation Contact Form

Frontier Communications Corp. Contact Form



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