RADNOR, Pa., June 18, 2018 (GLOBE NEWSWIRE) — Kaskela Law LLC notifies Switch, Inc. (NYSE:SWCH) (“Switch” or the “Company”) investors that a class action complaint has been filed on behalf of investors who purchased or acquired Switch’s common stock pursuant and/or traceable to the Company’s initial public offering (“IPO”).
On or about October 6, 2017, Switch completed its IPO of common stock, selling over 31 million shares of stock to investors at $17.00 per share.
The shareholder class action complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) Switch’s Grand Rapids and Atlanta facilities would never be as profitable as its Las Vegas facility, diminishing the yield on Switch’s recent capital expenditures acquiring and building out those facilities will bear; (2) Switch’s high capital expenditures to create high redundancy levels at its facilities were not as profitable as they once had been in the past; (3) Switch had already spent an additional more than $64 million on unbudgeted capital expenditures during the third quarter of 2017 that was not disclosed to investors until after the IPO; (4) Switch recognized $9.4 million in revenues during FY17 that it would not provide colocation services for until FY18, meaning its reported FY17 revenue growth and its FY18 revenue prospects were both overstated; (5) eBay, Switch’s largest colocation customer, would not be taking possession of colocation space it had reserved at Switch’s Tahoe/Reno facility in early 2018; and (6) at the time of the IPO, Switch’s business and financial prospects were not what defendants had led the market to believe they were in the Registration Statement. The complaint further alleges that, as a result of the foregoing, investors purchased Switch’s common stock at artificially inflated prices and suffered significant investment losses.
IMPORTANT DEADLINE ALERT: Investors who purchased Switch’s common stock may, no later than August 10, 2018, seek to be appointed as a lead plaintiff representative of the investor class. Switch investors are encouraged to contact Kaskela Law LLC (David Seamus Kaskela, Esq.) at (484) 258 – 1585 or (888) 715 – 1740 to discuss their important legal rights and options. Investors may also submit their information online at www.kaskelalaw.com/case/switch.
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.