Teligent, Inc. (TLGT) Accused of Misleading Investors

According to the complaint for alleged violations of the Securities Exchange Act of 1934 between May 2, 2017 and November 7, 2017,  Teligent, Inc. (TLGT) attributed its revenue growth to a combination of new product launches and competitive supply chain dynamics. In particular, Teligent CEO highlighted its supposedly well-run R&D-approval-production-launch process by pointing out two approvals from the past quarter. However, this statement was misleading because Teligent failed to disclose product non-conformities in R&D and non-compliance with applicable regulations. The truth was revealed in November 2017 when Teligent disclosed disappointing Q3 2017 earnings. Teligent attributed the drop to FDA approval delays and completion as well as undefined manufacturing issues. On this news, Teligent’s share price fell $2.29 on November 7, 2017, and has continued to plummet.