SAN FRANCISCO, CA / ACCESSWIRE / November 22, 2019 / Hagens Berman reminds Pareteum Corp. (NASDAQ:TEUM) investors of recent class action complaints filed against the company and firm urges TEUM investors who have suffered losses in excess of $500,000 to submit their losses now to learn if they qualify to recover their investment losses.
Most Expansive Class Period: Dec. 14, 2017 - Oct. 21, 2019
Lead Plaintiff Deadline: Dec. 23, 2019
Sign Up Now: www.hbsslaw.com/investor-fraud/TEUM
Contact An Attorney Immediately: [email protected]
510-725-3000
Hagens Berman's Pareteum Corp. (TEUM) Securities Class Action:
Hagens Berman filed an expansive Complaint on behalf of all investors who purchased or otherwise acquired Pareteum Corporation securities and pursues claims against the Defendants under the Securities Exchange Act of 1934 (the "Exchange Act"). After Hagens Berman filed its Complaint, other substantially similar complaints have been filed alleging differing class periods. To date, the most expansive class Period is Dec. 14, 2017 through Oct. 21, 2019, inclusive.
According to the detailed Complaint filed by Hagens Berman, Defendants misled investors by materially misrepresenting Pareteum's true business operations and financial results.
Specifically, the Complaint alleges Defendants misrepresented Pareteum as a "rapidly growing Cloud Communications Platform company" that was poised for exponential growth due to the Company's involvement in new industries such as block chain, customer wins, a rising "36-month contract revenue backlog," and effective contract conversion rates when in truth none of that was true.
The Complaint alleges, unbeknownst to investors and contrary to Defendants' statements, Pareteum contracted with either fake entities, related-third parties, or companies so small they had no chance of ever satisfying the value Defendants assigned to their contracts. Moreover, throughout the Expanded Class Period, Defendants violated Generally Accepted Accounting Principles ("GAAP") by prematurely recognizing revenues and inflating accounts receivable.
The truth emerged through a series of disclosures occurring between June 7, 2019 and October 21, 2019, when the Company announced that it will restate its consolidated financial statements as of and for the full year ended December 31, 2018, and interim periods ended March 31, 2019 and June 30, 2019 (the "Non-Reliance Periods").
As a result of these disclosures, the value of Pareteum stock has consistently decreased, damaging investors.
Recently, on Nov. 13, 2019, Defendants announced Pareteum would not timely file its quarterly financial statements as a result of its plan to restate financial statements for the Non-Reliance Periods. On November 15, 2019, Defendants announced Pareteum received a notice from Nasdaq stating the company was not in compliance with its rules and is in danger of being delisted.
"We're focused on recovering investors' substantial losses and holding Pareteum and its senior management accountable for their outright fraud," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of TEUM and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Pareteum should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email [email protected].
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Contact:
Reed Kathrein, 510-725-3000
SOURCE: Hagens Berman Sobol Shapiro LLP