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January 28, 2021 - The court preliminarily approved the settlement.
December 14, 2020 - A stipulation of settlement was filed by the parties.
June 22, 2020 - The court denied the denied the defendants' motion to dismiss the amended complaint.
April 17, 2020 - A motion to dismiss the amended complaint was filed.
February 28, 2020 - An amended complaint was filed.
July 30, 2019 - An investor in shares of GTT Communications Inc (NYSE: GTT) filed a lawsuit in the U.S. District Court for the Eastern District of Virginia over alleged violations of Federal Securities Laws by GTT Communications Inc in connection with certain allegedly false and misleading statements made between February 26, 2018 and July 1, 2019. In February 2018, GTT Communications Inc announced that it was purchasing Interoute Communications Holdings S.A. (“Interoute”), a telecommunications company that operated Europe’s largest cloud services platform in a transformational $2.3 billion acquisition that essentially doubled GTT Communications Inc’s size. On May 8, 2019, when GTT Communications Inc disclosed a larger than expected loss for the first quarter of 2019, including a sequential decline in revenues.
The plaintiff alleges that GTT Communications Inc blamed its poor performance on a host of issues with the Interoute Communications Holdings S.A. integration, including migrating legacy systems into GTT’s management database, discrepancies with Interoute Communications Holdings’ billing systems, and a poor salesforce. GTT Communications Inc further disclosed that shortly before the acquisition, Interoute Communications Holdings S.A. had made a strategic shift to sell cloud services that deviated from GTT’s core cloud networking business.
According to the complaint the plaintiff alleges on behalf of purchasers of GTT Communications Inc (NYSE: GTT) common shares between February 26, 2018 and July 1, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 26, 2018 and July 1, 2019, the GTT assured investors that it had conducted extensive due diligence on Interoute Communications Holdings S.A. , and the acquisition was a natural strategic fit for GTT—that the two companies “fit together almost hand in glove.” After the deal closed, GTT assured investors that Interoute Communications Holdings’ integration into the Company was “on track” and “not as complex” as many of the Company’s previous integrations.