The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Pareteum Corporation (NASDAQ: TEUM) who purchased shares between December 14, 2017 and October 21, 2019. The action, which was filed in the United States District Court for the Eastern District of New York, alleges that the Company violated federal securities laws.
In particular, the Pareteum lawsuit alleges that (a) it was not true that the Company’s purported success was the result of hyper-demand for Pareteum’s unique products or exceptional service, or the Company’s competent management; but, in fact, Defendants had propped up the Company’s results by manipulating Pareteum’s accounting for revenues, income, and the important Backlog metric; (b) Defendants had materially overstated the Company’s profitability by failing to properly account for the Company’s results of operations and by artificially inflating the Company’s financial results; (c) it was not true that Pareteum contained even the most minimally adequate systems of internal operational or financial controls necessary to assure that Pareteum’s reported financial statements were true, accurate, and/or reliable; (d) as a result, it also was not true that the Company’s financial statements and reports were prepared in accordance with GAAP and SEC rules; and (e) as a result of the aforementioned adverse conditions, Defendants lacked any reasonable basis to claim that Pareteum was operating according to plan, or that Pareteum could achieve the guidance sponsored and/or endorsed by Defendants.
Shareholders have until December 23, 2019 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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