NEW YORK, Nov. 14, 2017 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Frontier Communications Corporation (“Frontier Communications” or the “Company”) (NASDAQ:FTR) of the November 27, 2017 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 Frontier Communications stock or options between February 6, 2015, and May 2, 2017, and would like to discuss your legal rights, click here: www.faruqilaw.com/FTR. 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 Connecticut on behalf of all those who purchased Frontier Communications securities between February 6, 2015, and May 2, 2017 (the “Class Period”). The case, Morrow v. Frontier Communications Corporation et al, No. 3:17-cv-01759 was filed on October 19, 2017, and has been assigned to Judge Michael Peter Shea.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company acquired a substantial number of non-paying accounts as part of its acquisition of the wireline operations of Verizon Communications, Inc.; (2) as a result, the Company would be required to increase its reserves and write-off amounts from accounts receivable associated with the nonpaying accounts; and (3) as a result of the foregoing, the Company’s public statements were materially false and misleading.
Specifically, on February 27, 2017, the Company announced a net loss of $80 million for the fourth quarter of 2016, and stated that its results were impacted by the “resolution of nonpaying acquired CTF accounts,” referring to accounts acquired in the Verizon Acquisition. CEO Daniel McCarthy elaborated, stating, “Results for the fourth quarter were impacted by our intensified efforts to resolve acquired accounts in California, Texas and Florida that we have determined to be non-paying.”
After the announcement, Frontier Communication’s share price fell from $3.29 per share on February 27, 2017 to a closing price of $2.93 on February 28, 2017—a $0.36 or a 10.94% drop.
Then, on May 2, 2017, the Company reported a first quarter 2017 net loss of $75 million and a year-over-year first quarter revenue decline of $53 million. CFO Ralph McBride stated that approximately $16 million of the sequential revenue decline was a result of cleanup of CTF non-paying accounts and the automation of legacy non-pay disconnects. He added that “[t]he CTF account cleanup reduced Q1 revenue by $11 million, and the one-time impact related to automating the non-pay disconnect process for the legacy properties, reduced Q1 revenue by $5 million.”
On this news, Frontier Communication’s share price fell from $1.93 per share on May 2, 2017 to a closing price of $1.62 on May 3, 2017—a $0.32 or a 19.88% drop.
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 Frontier Communication’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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