ADTRAN, Inc. Class Action Lawsuit
- Company Name
- ADTRAN, Inc.
- Stock Symbol
- Class Period
- February 28, 2019 to October 9, 2019
- Motion Deadline
- December 16, 2019
- Southern District of New York
On October 17, 2019, the ADTRAN, Inc. class action lawsuit was filed charging ADTRAN and certain of its officers with violations of the Securities Exchange Act of 1934. The ADTRAN class action lawsuit was commenced in the Southern District of New York on behalf of purchasers of ADTRAN securities between February 28, 2019 and October 9, 2019 (the “Class Period”) and is captioned Burbridge v. ADTRAN, Inc., No. 1:19-cv-09619.
ADTRAN is a networking and communications company that provides services that enable voice, data, video, and internet communications across a variety of network infrastructures.
The ADTRAN class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about ADTRAN’s business, operations, and prospects. Specifically, defendants failed to disclose that there were material weaknesses in ADTRAN’s internal control over financial reporting and that, as a result, certain excess and obsolete inventory reserves (“E&O reserves”) had been improperly reported and ADTRAN’s financial results for certain periods were misstated. In addition, defendants knew, but failed to disclose, that there would be a pause in shipments to a Tier 1 Latin American customer that would affect ADTRAN’s revenue. As a result of this information being withheld from the market, ADTRAN securities traded at artificially inflated prices of close to $18 per share during the Class Period.
On July 17, 2019, ADTRAN announced earnings for the second quarter of 2019, which it stated were “preliminary due to ADTRAN’s ongoing assessment of the reasonableness of its current and previously reported E&O reserves.” On this news, ADTRAN’s share price fell $3.69 per share, or over 23%, to close at $12.13 per share on July 18, 2019. On August 12, 2019, ADTRAN disclosed it would be unable to timely file its quarterly financial report with the SEC and that it had concluded there were “two material weaknesses related to internal control deficiencies that existed as of December 31, 2018 and that continued through the end of the second quarter of 2019.”
Then, on October 9, 2019, after the market closed, ADTRAN 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 price of ADTRAN’s stock fell $2.10 per share, or over 19%, to close at $8.81 per share on October 10, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased ADTRAN securities during the Class Period to seek appointment as lead plaintiff in the ADTRAN class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the ADTRAN class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the ADTRAN class action lawsuit. An investor’s ability to share in any potential future recovery of the ADTRAN class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the ADTRAN class action lawsuit or have questions concerning your rights regarding the ADTRAN class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the ADTRAN class action lawsuit must be filed with the court no later than December 16, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action 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.