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SAN FRANCISCO, Oct. 07, 2019 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP reminds investors in ADTRAN, Inc. (NASDAQ: ADTN) of possible violations of federal securities laws.
ADTRAN, Inc. (ADTN) Investigation:
The firm’s investigation concerns the Company’s accounting for its excess and obsolete inventory reserves (“E&O reserves”).
On July 17, 2019, ADTRAN announced “preliminary” earnings for 2Q 2019 due to the Company’s assessment of its current and previously reported E&O reserves. This news caused ADTRAN shares to plummet over 23% on July 18, 2019.
Then, on August 12, 2019, ADTRAN disclosed its inability to timely file its quarterly financial report with the SEC. The Company admitted to material weaknesses in its internal controls resulting in a misstatement of the Company’s previously reported E&O Reserves.
“We’re focused on investors’ losses and whether ADTRAN intentionally misled investors by failing to timely write off unsalable inventory,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding ADTRAN should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email ADTN@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 510-725-3000