The Law Offices of Frank R. Cruz Announces Investigation on Behalf of Pareteum Corporation Investors (TEUM)
December 18 2019 - 1:45PM
Business Wire
Shareholders with $100,000 in losses or more are encouraged
to contact the firm
The Law Offices of Frank R. Cruz (“FRC”) announces an
investigation on behalf of Pareteum Corporation (“Pareteum” or the
“Company”) (NASDAQ: TEUM) investors concerning the Company and its
officers’ possible violations of federal securities laws.
If you are a shareholder who suffered a loss, click here to
participate.
On June 7, 2019, Marcus Aurelius Value published a report
questioning the Company’s accounting regarding backlog, backlog
conversion rates, and receivables.
On this news, the Company’s stock price fell $0.83, or over 24%,
to close at $2.58 per share on June 7, 2019, thereby injuring
investors.
Then, on June 25, 2019, Viceroy Research Group published a
report that alleged further accounting discrepancies related to
several sources of “uncollectable” revenue, concluding that “total
revenue is overstated by 42%.”
On this news, the Company’s stock price fell $0.51, or over 20%,
to close at $2.00 per share on June 26, 2019, thereby injuring
investors further.
Then, on October 15, 2019, the Company announced that Chief
Operating Officer Denis McCarthy was leaving the Company. McCarthy
had maintained the Company’s 36-month contractual revenue backlog
spreadsheets and analysis that were scrutinized by the Aurelius
Value and Viceroy reports.
On this news, the Company’s stock price fell $0.36, over three
consecutive trading sessions to close at $0.83 per share on October
17, 2019, thereby injuring investors further.
Then, on October 21, 2019, after the market closed, the Company
disclosed that certain revenues recognized during 2018 and 2019
should not have been recorded during that period and that, as a
result, the Company would restate their previously 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.
On this news, the Company’s stock price fell $0.4401, or nearly
60%, to close at $0.2992 on October 22, 2019, thereby injuring
investors further.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Pareteum securities, have information or would
like to learn more about these claims, or have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Frank R. Cruz, of FRC,
1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067
at 310-914-5007, by email to fcruz@frankcruzlaw.com, or visit our
website at www.frankcruzlaw.com. If you inquire by email please
include your mailing address, telephone number, and number of
shares purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20191218005674/en/
The Law Offices of Frank R. Cruz,
Los Angeles Frank R. Cruz, 310-914-5007 fcruz@frankcruzlaw.com
www.frankcruzlaw.com
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