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) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of Synchronoss securities between May 5, 2016 and April 27, 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 Overstating Its Financial Guidance
According to the complaint, Synchronoss repeatedly emphasized its strong financial and operational performance and predicted an optimistic outlook for the company in its public filings and press releases. Karen L. Rosenberger, Chief Financial Officer and Treasurer, stated, “We believe our ability to drive growth, while investing in our enterprise and international initiatives positions Synchronoss well heading into the second half of 2016 and beyond.” The complaint alleges that Synchronoss omitted from its public statements that the integration of its acquisitions was underperforming, which led the company to overstate its guidance. On April 27, 2017, Synchronoss revealed that it expected total revenue for the first quarter of 2017 to be $13 million to $14 million less than its previously announced guidance, and that it expected operating margins of 8% to 10%, which was also less than previously expected. On this news, Synchronoss’ stock price fell $11.33 per share, or 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.