PHILADELPHIA, Oct. 9, 2020 /PRNewswire/ -- Kaskela Law LLC announces that it is investigating GTT Communications, Inc. ("GTT" or the "Company") (NYSE: GTT) on behalf of the Company's stockholders. The investigation seeks to determine whether the members of GTT's board of directors breached their fiduciary duties to the Company and its stockholders.
Recently an amended securities fraud complaint was filed against GTT and certain of the Company's executive officers on behalf of investors who purchased shares of GTT's common stock between February 26, 2018 and August 7, 2019 (the "Class Period").
The Class Period begins on February 26, 2018, when GTT announced a $2.3 billion acquisition of Interoute Communications Holdings S.A. ("Interoute"), a telecommunications company that owned the largest fiber network in Europe. The complaint alleges that during the Class Period the defendants materially mislead investors about the integration progress of Interoute into GTT.
As detailed in the complaint, on May 8, 2019, GTT announced its first revenue decline in four years, which the defendants directly attributed to "delays related to integration activities and training as we migrated Interoute's legacy systems" onto GTT's Client Management Database. Following this disclosure, GTT's stock price fell $10.98 per share, or more than 25% in value, to close on May 9, 2019 at $29.91 per share.
Then on August 8, 2019, GTT announced another unexpected decline in revenue that defendants again directly attributed to "post integration challenges" arising from the Interoute acquisition. Following this news, GTT's stock price fell an additional $5.56 per share, or nearly 50% in value, to close on August 8, 2018 at $6.09 per share.
Current GTT stockholders who purchased or acquired shares of the Company's stock prior to February 26, 2018 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by email at firstname.lastname@example.org or online at http://kaskelalaw.com/case/gtt-communications/, for additional information about this investigation and their legal rights and options with respect to this matter.
Kaskela Law LLC represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
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SOURCE Kaskela Law LLC