The law firm of Kirby McInerney LLP announces that it filed a class action lawsuit in the U.S. District Court for the Southern District of New York on behalf of those who acquired ADTRAN, Inc. (“ADTRAN” or the “Company”) (NASDAQ: ADTN) securities during the period from February 28, 2019 through October 9, 2019 (the “Class Period”). Investors have until December 16, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that ADTRAN failed to disclose to investors that: (i) there were material weaknesses in the Company’s internal control over financial reporting; (ii) as a result, certain E&O reserves had been improperly reported; (iii) as a result, the Company’s financial results for certain periods were misstated; and (iv) there would be a pause in shipments to the Company’s Latin American customer.
On July 17, 2019, ADTRAN announced “preliminary” earnings for the second quarter of 2019 due to the Company’s assessment of its current and previously reported E&O reserves. On this news, the Company’s share price fell $3.69 per share, or 23.3%, to close at $12.13 on July 18, 2019.
Then, on October 9, 2019, the Company announced that its “revenue this quarter has been significantly impacted by a pause in shipments to a Tier 1 customer in Latin America and the continued slowdown in the spending at an international Tier 1 customer.” On this news, the Company’s share price fell $2.10 per share, or 19.2%, to close at $8.81 on October 10, 2019.
If you acquired ADTRAN securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.