Class action litigation has been filed in the United States District Court for the District of New Jersey against Sequans and certain Company executives on behalf of investors who purchased or otherwise acquired the publicly traded securities of Sequans, including Sequans' American Depositary Receipts ("ADRs") between April 29, 2016 and July 31, 2017, inclusive (the "Class"), alleging violations of the Securities Exchange Act of 1934.
At the start of the Class Period, April 29, 2016, Sequans filed a Form 20-F for the fiscal year ended December 31, 2015 (the "2015 20-F"). Among other things, the 2015 20-F states "[p]roducts are not sold with a right of return but are covered by warranty."
On May 2, 2017, Sequans issued a press release announcing its financial results for the first quarter of 2017 for the period ending March 31, 2017. In the May 2, 2017 press release, the Company said it expects revenue for the second quarter of 2017 to be in the range of $13.5 million to $15.5 million.
On August 1, 2017, the Company issued a press release announcing its financial results for the second quarter of 2017 for the period ending June 30, 2017. Among other things, Sequans reported revenue of $13.2 million, missing the lower end of its prior guidance, citing "a reduction of $740,000 related to a product return from an early 2016 tablet-related sale." Following this news, Sequans' ADR price fell $0.67 per share, or 18.21%, to close at $3.01 per share on August 1, 2017.
The complaint alleges that throughout the Class Period, the defendants made materially false and misleading statements regarding the Company's business, operational and financial results, which were known to defendants or recklessly disregarded by them. Specifically, defendants made false and/or misleading statements and/or failed to disclose that (1) the Company was improperly recognizing revenue, and (2) as a result, the Company's public statements were materially false and misleading at all relevant times.
If you are a member of the proposed Class, you may move the court no later than October 10, 2017 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing email@example.com or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
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San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP