Frontier Communications Corporation investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Frontier provides communications services in the United States, including broadband, video, and voice services.
According to Frontier, it acquired the wireline operations of Verizon Communications, Inc. (the “Verizon Acquisition”) in California, Texas and Florida on April 1, 2016, for a purchase price of $10.5 billion in cash and assumed debt.
The complaint alleges that, on February 27, 2017, the company disclosed a net loss of $80 million for the fourth quarter of 2016, and stated that its results were impacted by the “resolution of non-paying acquired CTF accounts.” On that same day, the company held a conference call to discuss its financial results, wherein Daniel J. McCarthy, the Chief Executive Officer, stated, among other things, that the company had been working through the cleanup process for the acquired accounts in California, Texas and Florida since July 20, 2016, and that the company began permanent disconnects and receivable write-offs in the third quarter 2016.
Following this news, the company’s stock price fell $0.36 per share, almost 11%, to close at $2.93 per share on February 28, 2017.
Then, on May 2, 2017, the company reported a first quarter 2017 net loss of $75 million and a year-over-year first quarter revenue decline of $53 million.
Following this news, the company’s stock price fell $0.32 per share, or more than 16%, to close at $1.61 per share on May 3, 2017.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose: (1) that the company acquired a substantial number of non-paying accounts as part of the Verizon Acquisition; (2) that, as a result, the company would be required to increase its reserves, and write off amounts from accounts receivable associated with the non-paying accounts; and (3) that, as a result of the foregoing, the defendants’ statements about Frontier’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
If you are a member of the class described above, you may no later than November 27, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
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