ADTRAN, Inc. (ADTN) Misled Shareholders
On August 12, 2019, ADTRAN disclosed that it was unable to timely file its quarterly financial report with the SEC due to a material weakness in the Company’s internal control that resulted in a misstatement of its excess and obsolete inventory reserves. Despite touting its ability to maintain sufficient inventory levels, on October 9, 2019, ADTRAN announced that its revenue had been “significantly impacted” by a pause in shipments to a customer in Latin America. Following all these disclosures, ADTRAN’s stock price fell 44% to close at $8.81 on October 10, 2019, and has yet to recover.