January 12, 2021 - An investor in shares of GTT Communications Inc (NYSE: GTT) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by GTT Communications Inc in connection with certain allegedly false and misleading statements made between May 5, 2016 and November 9, 2020.
McLean, VA based GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers in the United States, Europe, and internationally.
On August 10, 2020, after market hours, GTT Communications Inc filed a Notification of Late Filing with the U.S. Securities and Exchange Commission ( SEC ), stating that the Company is unable to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 (the 'Form 10-Q') within the prescribed time period without unreasonable effort or expense. GTT's SEC filing disclosed that [i]n the course of closing the Company's books for the quarter ended June 30, 2020, the Company identified certain issues related to the recording and reporting of Cost of Telecommunications Services and related internal controls.
On November 9, 2020, GTT Communications Inc announced its quarterly report for the quarter ended September 30, 2020 would be delayed as well. The Company discussed the ongoing review examining the accounting for Cost of Telecommunications Services and [. . .] a number of issues in connection with the Company's previously issued financial statements .
Shares of GTT Communications Inc (NYSE: GTT) declined from $15.14 per share in February 2020 to as low as $3.05 per share on January 6, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of GTT Communications Inc (NYSE: GTT) common shares between May 5, 2016 and November 9, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 5, 2016 and November 9, 2020, the defendants made false and/or misleading statements and/or failed to disclose that the Company's internal controls suffered from issues related to the recording and reporting of Cost of Telecommunications Services, that the Company's previously reported Cost of Telecommunications was inaccurate or accounted for unsupported adjustments, that inadequate internal controls would result in delays in the Company's 10-Q quarterly reports; and that as a result of the foregoing, Defendants' public statements were materially false and/or misleading and/or lacked a reasonable basis.