SNCR Investors Update and Deadline Reminder: Hagens Berman Alerts Investors in Synchronoss Technologies, Inc. to the Expanded Class Period, the June 30, 2017 Lead Plaintiff Deadline, and to the Admitted Improper Revenue Recognition
Friday, June 16, 2017 4:00:04 PM ET
Hagens Berman Sobol Shapiro LLP alerts investors in Synchronoss Technologies, Inc. (SNCR ) to the expanded class period in the pending securities class action. The expanded class period is October 28, 2015 through April 27, 2017. The Lead Plaintiff deadline is June 30, 2017.
If you purchased or otherwise acquired securities of SNCR between October 28, 2015 and April 27, 2017 and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
or contact Reed Kathrein, who is leading the firms investigation, by calling 510-725-3000 or emailing SNCR@hbsslaw.com.
On December 6, 2016, SNCR announced it entered into an agreement to acquire Intralinks Holdings, Inc. and Intralinks CEO (Ron Hovsepian) was expected to be appointed CEO of SNCR. The Company stated: "Synchronoss is giving initial 2017 revenue guidance of between $810 and $820 million with pro forma EPS of between $2.45 and $2.60 for the combined entity."
Shortly after the merger, on April 27, 2017, SNCR announced that CEO Hovsepian and newly appointed CFO John Frederick resigned effective immediately "to pursue other interests." In addition, the Company disclosed it expected first quarter revenues to be $13 million to $14 million less than the previously announced guidance.
On this news, the price of SNCR shares fell approximately 46% on heavy volume.
On May 15, 2017, the Company announced that the new CEO and CFO required additional time to file its first quarter 2017 earnings and Form 10-Q. The next day, SNCR received notice from the Listing Qualifications Department of The NASDAQ Stock Market indicating that the Company was not in compliance with the relevant Nasdaq Listing Rule because it has not yet filed the Form 10-Q.
On June 13, 2017, the Company announced that investors should no longer rely on its previously issued financial statements for the fiscal years ended December 31, 2016 and 2015 and their respective quarterly periods. All of those will be restated because revenue was improperly recognized.
"Recognizing revenue when its not earned is not a judgment call," said Hagens Berman partner Reed Kathrein. "It is a serious violation of generally accepted accounting principles."
Whistleblowers: Persons with non-public information regarding SNCR should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email SNCR@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 510-725-3000
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