SAN FRANCISCO, Oct. 8, 2019 /PRNewswire/ -- Hagens Berman has filed a securities class action complaint on behalf of investors that purchased shares in Sonim Technologies Inc.'s (NASDAQ: SONM) May 2019 initial public offering. The firm is also investigating whether Sonim and its senior officials engaged in a more expansive securities fraud by intentionally concealing problems with its flagship XP8 mobile phone device.
RELEVANT PERIOD: May 10, 2019 - Sept. 10, 2019
In-Depth Case Analysis: www.hbsslaw.com/cases/SONM
Call: Reed Kathrein, who is leading the firm's investigation: 510-725-3000
SONIM Class Action:
On May 10, 2019, Sonim conducted its IPO, selling over 3.5 million shares of stock individually priced at $11.00. Integral to the IPO's success was the company's Registration Statement, which made positive statements concerning the features and functionality of Sonim's mobile phones and accessories. Thereafter, Sonim made similar representations about its mobile phone devices and its stock steadily climbed, trading over $18 in June 2019.
According to the Complaint filed by Hagens Berman, contrary to the Registration Statement's hyping of its mobile phones' reliability and superior software configurations and performance, Sonim was in truth experiencing severe software and technical challenges with its flagship smartphone, the XP8, as well as its XP5 and XP3 models.
The truth emerged on September 10, 2019, when Sonim's management disclosed that "the company has experienced technical challenges related to its [flagship] XP8 smartphone . . ., which cumulatively resulted in lost sales momentum." The company also lowered guidance and also announced the abrupt resignation of CFO Jim Walker. On this news, the price of SONM shares plummeted $3.30, or 47%, in a single trading day.
On October 4, 2019, Hagens Berman, on behalf of its client, filed a securities class action complaint in the Superior Court of California, County of San Mateo. The action is brought on behalf of all Sonim investors that purchased shares in the May 2019 IPO, and alleges claims under the Securities Act of 1933.
The firm, however, is also investigating whether Sonim and its senior officials engaged in a more expansive securities fraud giving rise to additional claims under the Securities Exchange Act of 1934.
If you invested in SONM between May 10, 2019 and September 10, 2019 (the "Relevant Period") and suffered significant losses ($50,000+), contact Hagens Berman immediately to discuss your rights.
"We're focused on investors' losses and whether senior management concealed problems with Sonim's XP8 smartphones and other devices," said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Sonim should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email SONM@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 510-725-3000
SOURCE Hagens Berman Sobol Shapiro LLP