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Class-action law firm urges ADTN investors who have suffered losses of $50K+ to submit a loss form now to learn if they qualify to recover their investment losses.
SAN FRANCISCO, Oct. 13, 2019 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP reminds investors in ADTRAN, Inc. (NASDAQ: ADTN) of the firm’s ongoing investigation of possible violations of the federal securities laws.
ADTRAN, Inc. (ADTN) Investigation:
The firm’s investigation concerns whether ADTRAN engaged in fraudulent accounting.
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 control resulting in a misstatement of the Company’s previously reported E&O reserves.
On September 20, 2019, ADTRAN filed its quarterly financial report correcting “misstatement of its excess and obsolete inventory reserves in its previously issued annual and interim financial statements.”
On October 10, 2019, ADTRAN announced “[o]ur revenue this quarter has been significantly impacted by a pause in shipments to a Tier 1 customer in Latin America and the continued slowdown in the spending at an international Tier 1 customer.” This news caused ADTRAN shares to plummet nearly 26% during intraday trading.
“We’re focused on investors’ losses, whether ADTRAN intentionally misled investors by failing to timely write off unsalable inventory, and whether management’s statements about the Tier 1 customers may have been misleading,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of ADTRAN and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
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
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 510-725-3000