NEW YORK, June 15, 2018 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Switch, Inc. (“Switch” or the “Company”) (NYSE:SWCH) of the August 10, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Switch common stock pursuant to the Company’s initial public offering (“IPO”) on October 6, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/SWCH. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Switch Class A common stock pursuant to the Company’s IPO on or around October 6, 2017. The case, Cai v. Switch, Inc. et al, No. 3:18-cv-10425 was filed on June 11, 2018 and has been assigned to Judge Anne Elise Thompson.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements or omitting material information from its Registration Statement. Specifically, the complaint alleges that the Registration Statement failed to accurately identify the true source of the company’s increase in revenue during the first half of fiscal year 2017 (“FY17”). Whereas Switch cited the construction and expansion of its data centers as the basis of consistent quarterly revenue growth in FY17, it misleadingly conflated its uniquely profitable Las Vegas center with new and much less profitable centers in Atlanta and Grand Rapids. In effect, the company overstated its year-over-year revenue growth for the first six months of 2017 by approximately 53%.
During the FY17 conference call on April 2, 2018 CFO Gabe Nacht disclosed that Switch had in fact recognized revenue in 2017 for services that would not occur until 2018.
On this news, Switch’s Class A common stock fell from a closing price of $15.85 on April 2, 2018, to a closing price of $13.37 on April 3, 2018, a decrease of $2.48 or 15.65%.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Switch’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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