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SAN FRANCISCO, Oct. 22, 2019 (GLOBE NEWSWIRE) -- Hagens Berman reminds investors in Pareteum Corporation (NASDAQ: TEUM) of the firm’s ongoing investigation of possible violations of federal securities laws. The firm urges TEUM investors who have suffered losses in excess of $100,000 to submit your loss now to learn if they qualify to recover their investment losses.
Pareteum Corporation (TEUM) Investigation:
The firm’s investigation concerns the accuracy of the Company’s reported financial results.
On June 7, 2019, Marcus Aurelius Value published a report questioning the propriety of Pareteum’s accounting and statements about its backlog, backlog conversion rates, and receivables. The report concluded, “[w]e see massive downside potential and believe the stock is completely uninvestible.”
Next, on June 25, 2019, Viceroy Research Group published a report identifying several sources of “uncollectable” revenue presented in Pareteum’s financial results, concluding that “total revenue is overstated by 42%.”
Then, on August 26, 2019, cash-strapped Pareteum announced that as a condition of obtaining $2.5 million in financing, the Company was forced to issue 750,000 shares to its senior secured creditor, thereby diluting existing shareholders.
On October 15, 2019, the Company announced the termination of Pareteum’s Chief Operating Officer Denis McCarthy, who reportedly played a central role in disseminating the Company’s 36-Month-Contract-Backlog, the metric under intense scrutiny.
On October 21, 2019, the company announced that it will restate its issued consolidated financial statements as of and for the full year ended December 31, 2018, and interim periods ended March 31, 2019 and June 30, 2019.
As a result of these disclosures, the value of Pareteum stock has consistently decreased, closing at $0.73 per share on October 21, 2019.
“We’re focused on investors’ losses and whether the company inflated its reported revenues,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of TEUM and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Pareteum 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 TEUM@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