LogMeIn, Inc. (NasdaqGS: LOGM) Accused of Failing to Disclose Declining Renewal Rates For Its Services
According to the complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between March 1, 2017 and July 26, 2018, many of LogMeIn’s services are offered through subscription contracts and, in turn, the company’s ability to grow depends in part on subscription renewals. However, LogMeIn had aggressively moved customers from monthly to annual payments, failed to deliver planned product enhancements, and was slow to address product quality issues. As a result, LogMeIn’s customers, who struggled to do business with the company, turned to LogMeIn’s competitors. On July 26, 2018, LogMeIn admitted that the company had implemented strategies that negatively impacted renewal rates of certain of its services. On this news, LogMeIn’s stock fell over 25% to close at $77.85 per share on July 27, 2018 and has yet to recover.
LogMeIn, Inc. (NasdaqGS: LOGM) Shareholders Have Legal Options
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