RADNOR, Pa., May 26, 2018 (GLOBE NEWSWIRE) — Kaskela Law LLC alerts Synacor, Inc. (NASDAQ:SYNC) (“Synacor” or the “Company”) investors that a class action lawsuit has been filed on behalf of investors who purchased or acquired the Company’s securities between May 4, 2016 and March 15, 2018, inclusive (the “Class Period”).
DEADLINE ALERT: Investors who purchased Synacor securities during the Class Period may, no later than June 4, 2018, seek to be appointed as a lead plaintiff representative of the investor class. Synacor investors are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258–1585 or (888) 715–1740 to discuss their legal rights and options or visit www.kaskelalaw.com/case/synacor for additional information.
Synacor operates as a technology development, multiplatform services, and revenue partner for video, Internet, and communications providers. On May 4, 2016, Synacor announced that it had secured a three-year contract to host web and mobile services for AT&T Inc.
However, on August 9, 2017, Synacor issued a press release disclosing that “a significant portion of the revenue” that the Company was expecting during the remainder of 2017 would be “delayed to 2018.” Following this news, shares of the Company’s stock fell $1.15 per share, or over 32%, to close on August 10, 2017 at $2.40 per share.
Then, on March 15, 2018, the Company further disclosed that “in the last three quarters of 2017 we generated approximately $25 million in revenue from AT&T. We are expecting that AT&T will continue to focus on consumer experience, and as such, our 2018 guidance reflects the annualized 2017 run rate. Clearly, this forecast is below the $100 million annual revenue target that AT&T and Synacor announced when we first discussed the portal contract and was a critical element of Synacor’s $300 million 2019 target.” Following this news, shares of the Company’s stock fell an additional $0.30 per share, or nearly 15%, to close on March 16, 2018 at $1.75 per share.
The shareholder class action complaint alleges that Synacor and certain of its senior executive officers made false and misleading statements and/or failed to disclose to investors that: (i) Synacor was unlikely to receive significant revenues from the AT&T contract until 2018; and (ii) as such, the Company’s revenue forecasts issued during the Class Period were materially false and misleading. The complaint further alleges that, as a result of the foregoing, investors purchased Synacor’s securities at artificially inflated prices during the Class Period and sustained significant investment losses following the Company’s disclosures.
Synacor investors are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585 or (888) 715 – 1740, or via www.kaskelalaw.com/case/synacor, to discuss their legal rights and options with respect to this action prior to June 4, 2018.
Kaskela Law LLC exclusively prosecutes shareholder actions in state and federal courts throughout the country on behalf of investors. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.