WideOpenWest (WOW) Accused of Misrepresenting Its Prospects in its Offering Documents

According to a recently filed complaint, between May 25 and May 30, 2017, WideOpenWest conducted its IPO, offering 320,970,589 shares priced at $17.00 per share, raising $356 million in gross proceeds. However, the company – who claimed its Chicago fiber project was a driver of future growth for the company – failed to disclose that it was planning to sell this valuable project just months after the IPO. The company also failed to disclose that its customer service and user experience had deteriorated such that WideOpenWest was losing customers and would be forced to invest additional funds to curtail the loses. On March 14, 2018, the company issued its financial results for the fourth quarter and fiscal year 2017, announcing a full year decline in total revenue of approximately 4%, and revealing that the WideOpenWest had not lived up to long-held reputation of providing exceptional customer experiences," and that the company required "investments of between $20 million and $25 million …" In response to these and other disclosures, WideOpenWest's stock plunged more than 23% on March 15, 2018, to close nearly 59% below the IPO price.

WideOpenWest (WOW) Shareholders Have Legal Options

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