Sonim Technologies, Inc. Class Action Lawsuit
- Company Name
- Sonim Technologies, Inc.
- Stock Symbol
- Class Period
- Purchasers of Sonim common stock pursuant to the May 10, 2019 initial public offering
- Motion Deadline
- December 6, 2019
- Northern District of California
On October 7, 2019, the Sonim Technologies, Inc. class action lawsuit was filed charging Sonim, certain of its officers and directors, and the underwriters of its May 2019 initial public offering (“IPO”) with violations of the Securities Act of 1933. The Sonim class action lawsuit was commenced in the Northern District of California on behalf of purchasers of Sonim common stock pursuant to the IPO and is captioned Malhotra v. Sonim Technologies, Inc., No. 3:19-cv-06416.
Sonim provides ultra-rugged mobile phones and accessories for task workers who are physically engaged in their work environments. The phones and accessories connect workers with voice, data, and workflow applications in two end-markets – industrial enterprise and public sector.
On May 9, 2019, in connection with the IPO, Sonim filed the final amendment to its Registration Statement on Form S-1/A with the U.S. Securities and Exchange Commission (“SEC”), which was declared effective the same day (the “Registration Statement”). On May 13, 2019, Sonim filed the final Prospectus for the IPO and sold approximately 4.07 million shares of Sonim common stock at $11 per share for net proceeds of approximately $37.5 million to Sonim.
The Sonim class action lawsuit alleges that the Registration Statement for the IPO contained materially false and misleading statements and/or failed to disclose material adverse facts about Sonim’s business, operations, and prospects. Specifically, the Registration Statement failed to disclose that Sonim’s XP8 smartphone was experiencing material software challenges that would adversely affect how the device’s Qualcomm chipset, which supported Band 14 access, connected to AT&T’s carrier network configuration; that Sonim’s XP5 and XP3 phones were experiencing material software defects that adversely affected their optimization with certain accessories; and that, as a result, Sonim was reasonably likely to delay the launch of new products and its financial results would be adversely impacted.
On September 10, 2019, Sonim updated its 2019 financial guidance, stating that it expected fiscal 2019 net revenues to be flat or slightly below 2018 net revenues of $135.7 million due to “significant delays” in the launch of new products and software issues related to the new introductions. In addition, Sonim announced that James Walker “will cease serving as Sonim’s Chief Financial Officer.” On this news, the price of Sonim’s stock fell $3.30 per share, or nearly 47%, to close at $3.76 per share on September 10, 2019. Since Sonim issued its updated financial guidance on September 10, 2019, the price of Sonim stock has continued to decline, and by October 8, 2019, it was trading at less $3 per share, more than 72% below the IPO price of $11 per share.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Sonim common stock pursuant to the IPO to seek appointment as lead plaintiff in the Sonim class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Sonim class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Sonim class action lawsuit. An investor’s ability to share in any potential future recovery of the Sonim class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Sonim class action lawsuit or have questions concerning your rights regarding the Sonim 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 Sonim class action lawsuit must be filed with the court no later than December 6, 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.