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The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Synacor, Inc. (NASDAQ: SYNC) who purchased shares between May 4, 2016 and March 15, 2018. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the SYNC lawsuit alleges that (i) Synacor was unlikely to receive significant revenues from its contract with AT&T until 2018; (ii) as such, the Company's revenue forecasts issued during the Class Period were materially false and misleading; and (iii) as a result of the foregoing, Synacor shares traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
On May 4, 2016, Synacor announced it had secured a three-year contract with AT&T to host web and mobile services. On August 9, 2017, Synacor issued a press release announcing that “The joint AT&T-Synacor team has made the strategic decision to prioritize portal engagement right now over monetization.” Synacor CEO Himesh Bhise was quoted as stating that “a significant portion of the revenue that we were expecting in Q3 and Q4 this year is delayed to 2018, and we are adjusting our financial guidance for 2017 accordingly.” Then on March 15, 2018, the Company held a conference call during which Bhise noted that “in the last three quarters of 2017, we generated approximately $25 million in revenue from AT&T” and that “Clearly, this forecast is below the $100 million annual revenue target that AT&T and Synacor announced when we first discussed the portal contract…”. Following this news, shares of Synacor fell more than 14% to close at $1.75 on March 16, 2018.
Shareholders have until June 4, 2018 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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