Ribbon Communications, Inc. (RBBN) Accused of Projecting Unrealistic Revenue Goals
According to the complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between January 8, 2015 and March 24, 2015, Sonus officials were aware that the company would not meet its projected $74 million revenue forecast for Q1 2015, but nonetheless reaffirmed these figures on multiple occasions. On March 24, 2015, Sonus revealed dismal Q1 2015 results, missing its forecast by $24 million and taking in only $50 million in revenue. On this news, Sonus’ stock plummeted over 33% to close at $8.70 per share on March 24, 2015. Over three and a half years later, Ribbon Communications’ stock trades even lower, closing at only $6.63 per share on November 12, 2018. Just three months ago, it was reported that the SEC had charged Ribbon, Chief Financial Officer Mark Greenquist, and Vice President of Worldwide Sales and Marketing Michael Swade for making misstatements about Sonus’ quarterly revenue estimates and guidance for Q1 2015. The parties agreed to pay $1.97 million in civil penalties to settle the charges.
Ribbon Communications, Inc. (RBBN) Shareholders Have Legal Options
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