Shareholder Alert: Robbins LLP Reminds Investors ADTRAN, Inc. (ADTN) Sued for Misleading Shareholders
February 17 2020 - 1:59PM
Business Wire
Shareholder rights law firm Robbins LLP reminds investors that a
purchaser of ADTRAN, Inc. (NASDAQ: ADTN) filed a class action
complaint for alleged violations of the Securities Exchange Act of
1934 between February 28, 2019 and October 9, 2019. ADTRAN is a
networking and communications company that provides services which
enable voice, data, video, and internet communications across a
variety of network infrastructures.
If you suffered a loss as a result of ADTRAN's misconduct, click
here.
ADTRAN, Inc. (ADTN) Accused of Misleading
Shareholders
According to the complaint, in February 2019, ADTRAN issued its
2018 Form 10-K, reporting total sales of $529.27 million and
touting the Company's ability to maintain sufficient inventory
levels. These financial results and the Company's ability to report
excess and obsolete inventory reserves (”E&O reserves") were
then reaffirmed in a Form 10-Q in May 2019. Despite these
statements, on July 17, 2019, ADTRAN revealed in its second quarter
2019 earnings report that the Company was currently conducting an
ongoing assessment of its current and previous E&O reserves. On
August 12, 2019, ADTRAN disclosed that it was unable to timely file
its quarterly financial report with the SEC due to a material
weakness in the Company's internal control that resulted in a
misstatement of its E&O reserves. Then, on October 9, 2019,
ADTRAN announced that its revenue had been "significantly impacted"
by a pause in shipments to a customer in Latin America. Following
all these disclosures, ADTRAN's stock price fell 44% to close at
$8.81 on October 10, 2019, and has yet to recover.
ADTRAN, Inc. (ADTN) Shareholders Have Legal Options
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click Here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
lkandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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