- Company Name
- CenturyLink, Inc.
- Stock Symbol
- Class Period
- May 10, 2018 to March 4, 2019
- Motion Deadline
- May 5, 2019
- Central District of California
The complaint charges CenturyLink and certain of its current and former officers with violations of the Securities Exchange Act of 1934. CenturyLink provides various communications services to residential, business, wholesale and governmental customers primarily in the United States. On November 1, 2017, CenturyLink acquired Level 3 Communications, a telecommunications and internet service provider.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations, including that CenturyLink had undisclosed material weaknesses in internal controls over its revenue recording processes and the procedures for measuring fair value of assets and liabilities assumed in connection with its Level 3 acquisition, and consequently, CenturyLink would be unable to file its Form 10-K for the fiscal year ended December 31, 2018 in a timely manner. As a result of this information being withheld from the market, CenturyLink securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $24 per share.
Then, on March 4, 2019, CenturyLink announced it would not be able to file its annual report on Form 10-K with the SEC due to “recently identified weaknesses in internal controls over the Company’s revenue recording processes and the procedures for measuring fair value of assets and liabilities assumed in connection with the Level 3” acquisition, which “created the need to conduct additional review and testing with respect to those processes prior to finalizing the assessment and the audits of the effectiveness of internal control over financial reporting as of December 31, 2018 and of the Company’s financial statements as of and for the year ended December 31, 2018.” On this news, the price of CenturyLink shares fell over 6% to close at $12.15 per share on March 4, 2019.