NEW YORK, April 16, 2018 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Synacor, Inc. ("Synacor" or the "Company") (NASDAQ: SYNC) of the June 4, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Synacor stock or options between May 4, 2016 and March 15, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/SYNC. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Synacor securities between May 4, 2016 and March 15, 2018 (the "Class Period"). The case, Lefkowitz v. Synacor, Inc. et al., No. 18-cv-02979 was filed on April 4, 2018, and has been assigned to Lorna Gail Schofield.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by misrepresenting the ability of the company to receive significant revenue from its portal services contract with AT&T.
On May 4, 2016, the Company announced that it had selected AT&T as a provider of portal service in order to drive user engagement; the Company stated that revenues from the contract were expected to be approximately $100 million per year after product deployment was finalized in 2017.
On August 9, 2017 the Company released its financial results for the second quarter of 2017 which ended on June 30, 2017. The Company lowered its revenue guidance from 2017, down from a range of $160 million to $170 million, to a range of $140 million to $150 million.
After the announcement, Synacor's share price fell from $3.55 per share on August 9, 2017 to a closing price of $2.40 on August 10, 2017—a $1.15 or a 32.39% drop.
Then, on March 15, 2018, post-market, Synacor held a conference call with analysts and investors to discuss the Company's fourth-quarter earnings. During the call, CEO Himesh Bhise said, "Given this focus, in the last three quarters of 2017, we generated approximately $25 million in revenue from AT&T. We are expecting that AT&T will continue to focus on consumer experience, and as such, our 2018 guidance reflects the annualized 2017 run rate. Clearly, this forecast is below the $100 million annual revenue target that AT&T and Synacor announced when we first discussed the portal contract and was a critical element of Synacor's $300 million 2019 target."
After the announcement, Synacor's share price fell from $2.05 per share on March 15, 2018 to a closing price of $1.75 on March 16, 2018—a $0.30 or a 14.63% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Synacor's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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