NEW YORK, Sept. 28, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Frontier Communications Corporation ("Frontier Communications" or the "Company") (NASDAQ: FTR) of the November 27, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Frontier Communications stock or options between April 1, 2016, and May 2, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/FTR. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the District of Connecticut on behalf of all those who purchased Frontier Communications securities between April 1, 2016, and May 2, 2017 (the "Class Period"). The case, Bray v. Frontier Communications Corporation et al, No. 17-cv-01617 was filed on September 26, 2017, and has been assigned to Judge Victor A. Bolden
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to appropriately disclose the underperformance of the assets obtained through the acquisition of the wireline operations of Verizon Communications, Inc. in California, Florida, and Texas completed on April 1, 2016 ("Verizon Acquisition").
Specifically, on February 27, 2017, the Company announced disclosed a net loss of $80 million for the fourth quarter of 2016, and stated that its results were impacted by the "resolution of nonpaying acquired CTF accounts," referring to accounts acquired in the Verizon Acquisition. CEO Daniel McCarthy elaborated, stating, "Results for the fourth quarter were impacted by our intensified efforts to resolve acquired accounts in California, Texas and Florida that we have determined to be non-paying."
After the announcement, Frontier Communication's share price fell from $3.29 per share on February 27, 2017 to a closing price of $2.93 on February 28, 2017”a $0.36 or a 10.94% drop.
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. CFO Ralph McBride stated that approximately $16 million of the sequential revenue decline was a result of cleanup of CTF non-paying accounts and the automation of legacy non-pay disconnects. He added that "[t]he CTF account cleanup reduced Q1 revenue by $11 million, and the one-time impact related to automating the non-pay disconnect process for the legacy properties, reduced Q1 revenue by $5 million."
On this news, Frontier Communication's share price fell from $1.93 per share on May 2, 2017 to a closing price of $1.62 on May 3, 2017”a $0.32 or a 19.88% drop.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Frontier Communication's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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