Crown Castle International Corp. Class Action Lawsuit
- Company Name
- Crown Castle International Corp.
- Stock Symbol
- Class Period
- February 26, 2018 to February 26, 2020
- District of New Jersey
On February 27, 2020, the Crown Castle International Corp. securities class action lawsuit was filed charging Crown Castle and certain of its officers with violations of the Securities Exchange Act of 1934. The Crown Castle securities class action lawsuit was commenced in the District of New Jersey on behalf of purchasers of Crown Castle (NYSE:CCI) publicly traded securities between February 26, 2018 and February 26, 2020 (the “Class Period”) and is captioned La v. Crown Castle International Corp., No. 2:20-cv-02156.
Crown Castle is a real estate investment trust that owns, operates, and leases shared wireless infrastructure throughout the United States and Puerto Rico. As of December 31, 2016, Crown Castle owned, operated and leased more than 40,000 cell towers and more than 75,000 route miles of fiber supporting small cells and fiber solutions.
The Crown Castle securities class action lawsuit alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose that: (1) Crown Castle’s internal control over financial reporting and its disclosures controls and procedures were ineffective and materially weak; (2) Crown Castle’s financial accounting and reporting was not in accordance with generally accepted accounting principles (“GAAP”); (3) Crown Castle’s net income, adjusted EBITDA, and adjusted funds from operations (“AFFO”) were inflated; and (4) as a consequence, Crown Castle would need to restate its financial statements for the years ended December 31, 2018 and 2017, and unaudited financial information for the quarterly and year-to-date periods in the year ended December 31, 2018 and for the first three quarters in the year ended December 31, 2019. As a result of this information being withheld from the market, Crown Castle securities traded at artificially inflated prices during the Class Period, with the price of Crown Castle’s stock reaching a high of more than $168 per share.
Then on February 26, 2020, Crown Castle disclosed that its historical accounting practice for tower installation services was not acceptable under GAAP and that Crown Castle would be forced to restate its “financial statements for the years ended December 31, 2018 and 2017, and unaudited financial information for the quarterly and year-to-date periods in the year ended December 31, 2018 and for the first three quarters in the year ended December 31, 2019.” According to Crown Castle, the preliminary impact of these restatements “to each of net income, adjusted EBITDA and AFFO is a decrease of approximately $100 million for full year 2019 actuals and a decrease of approximately $90 million to our Previous 2020 Outlook.” On this news, the price of Crown Castle stock fell $16.29 per share, or 10%, to close at $148.40 per share on February 27, 2020.
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