Robbins LLP: Synchronoss Technologies, Inc. (SNCR) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Synchronoss Technologies, Inc. (NasdaqGS: SNCR) on behalf of all purchasers of Synchronoss securities between October 28, 2015 and April 26, 2017, for alleged violations of the Securities Exchange Act of 1934 by Synchronoss’ officers and directors. Synchronoss provides cloud solutions and software-based activation for connected devices worldwide.
Synchronoss Accused of Engaging in Scheme to Inflate Company’s Stock Price
According to the complaint, Synchronoss devised a scheme to artificially inflate the company’s stock price by divesting a substantial part of the business to an undisclosed related party owned and managed by friends and family of Synchronoss’ Executive Chairman and Chief Executive Officer, Stephen G. Waldis. Not only did Synchronoss misrepresent the financial terms of the divestiture, but it also misrepresented the financial strength of the company’s cloud computing segment. On December 6, 2016, Synchronoss announced that it was acquiring Intralinks Holdings, Inc. for $13.00 per share or $821 million in equity value and divesting 70% of the company’s carrier activation business to Sequential Technology International, LLC (“Sequential”) for $146 million, disclosing few details. Then, on April 27, 2017, Synchronoss revealed that then-Chief Executive Officer Ronald Hovsepian and then-Chief Financial Officer John Frederick were leaving the company and warned investors that first quarter revenue would not meet expectations. On this news, Synchronoss’ stock declined 46% to close at $13.29 per share on April 27, 2017.
Synchronoss Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.