SAN DIEGO & NEW YORK–(BUSINESS WIRE)–$FSNN #ClassAction–Shareholder rights law firm Robbins
Arroyo LLP announces that a purchaser of Fusion Connect, Inc.
(NASDAQ: FSNN) filed a class action complaint for alleged violations of
the Securities Exchange Act of 1934 between May 11, 2018 and April 2,
2019. Fusion Connect offers domestic and international voice services to
telecommunications carriers worldwide.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/fusion-connect-jun-19/
Fusion Connect Overstated Earnings
According to the complaint, in May 2018, Fusion Connect acquired the
cloud and business services company Birch Communications Holdings, Inc.
In April 2019, Fusion Connect revealed that its previous financial
statements should no longer be relied upon and that it was unable to
file its 2018 Form 10K on time due to accounting errors. Specifically,
Fusion Connect acknowledged that the process used by certain of Birch’s
subsidiaries for capitalizing costs associated with the customer
on-boarding process and the related judgments and estimates were not
designed with sufficient precision. As a result, Fusion Connect
overstated its earnings between $1.7 million and $4.1 million. On this
news, Fusion Connect shares dropped over 80% to close at $0.22 per share
on April 3, 2019. The stock currently trades at just $0.05.
Fusion Connect Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leo Kandinov at (800)
350-6003, [email protected]
or via the shareholder
information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. Check out Stock
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