On April 27, 2017 before the market opened, Synchronoss issued a press release announcing the departures of Chief Executive Officer Ronald Hovsepian ("Hovsepian") and Chief Financial Officer John Frederick ("Frederick") "to pursue other interests." Both Hovsepian and Frederick had only served in their respective positions for a few months - Hovsepian had served as CEO since the recent acquisition of Intralinks Holdings, Inc. that closed in January 2017, and Frederick had served as CFO since the announcement of his appointment on February 27, 2017.
Additionally, the April 27, 2017 press release disclosed that Synchronoss "expects total revenue for the first quarter of 2017 to be $13 million to $14 million less than the company's previously announced guidance" and that "[o]perating margins are expected to be 8% to 10%, which are less than previously announced guidance."
Following this news, the price of Synchronoss' common stock plunged by 46%, or $11.33 per share, to close at $13.29 per share on April 27, 2017.
Then, on June 14, 2017 after the market closed, Synchronoss filed a Form 8-K with the SEC disclosing that the Audit Committee of the Board of the Company has concluded that the Company's previously issued financial statements for the fiscal years ended December 31, 2016 and 2015, as well as the respective quarterly periods, should be restated and should no longer be relied upon. Following this news, the price of Synchronoss' common stock declined in midday trading on June 14, 2017.
A class action has been filed in the United States District Court for the District of New Jersey against Synchronoss and certain Company executives, including former CEO Hovsepian and former CFO Frederick, on behalf of investors who purchased or otherwise acquired Synchronoss securities between May 5, 2016 and April 27, 2017, inclusive (the "Class"), alleging violations of the Securities Exchange Act of 1934. Specifically, the action alleges that during the Class Period defendants failed to disclose, among other things, that (1) newly acquired Intralinks was underperforming, (2) the Company's integration of other acquisitions was underperforming, (3) the Company was facing serious hurdles integrating, and capitalizing on, its newly acquired companies, and (4) the Company's guidance was overstated.
If you are a member of the proposed Class, you may move the court no later than June 30, 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 firstname.lastname@example.org or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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:
Jeffrey P. Campisi
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
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
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SOURCE Kaplan Fox & Kilsheimer LLP