SAN FRANCISCO, April 30, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Comtech Telecommunications Corp. (NASDAQ: CMTL) investors who suffered substantial losses to take action by submitting your losses here.
Website: www.hbsslaw.com/investor-fraud/cmtl
Contact An Attorney Now: CMTL@hbsslaw.com Phone: 844-916-0895
Comtech Telecommunications Corp. (CMTL) Investigation:
1. The “One Comtech” Strategy Unravels: Under the leadership of CEO Ken Peterman, Comtech had championed the “One Comtech” strategy, which aimed to unify the company’s previously independent and siloed businesses. This strategic shift reportedly led to five consecutive quarters of revenue growth. However, recent cracks in the company’s façade of success have raised concerns.
On Dec. 7, 2023, Comtech disclosed a troubling financial situation, expressing doubt about its ability to fund operations for the next 12 months and repay a credit facility due in Oct. 2024. The market responded swiftly, with Comtech shares plummeting by $3.71 (29%) on Dec. 8, 2023.
2. CEO Termination and SEC Filings Delay: Further turmoil ensued when, on Mar. 12, 2024, Comtech’s board of directors fired CEO Ken Peterman. While the company maintained that the termination was unrelated to its business strategy or financial performance, it emphasized its commitment to ethical and professional conduct. Investors remained skeptical.
Adding to the uncertainty, on Mar. 13, 2024 Comtech announced that it would not timely file its quarterly financial statements with the U.S. Securities and Exchange Commission (SEC). This disclosure triggered another sharp decline in the company’s stock, with shares falling by $1.57 (27%) on the same day.
3. Q2 2024 Financial Results Disappoint: Then, on Mar. 18, 2024, under the interim leadership of the new CEO, Comtech reported dismal financial results for the second quarter of 2024, badly missing consensus revenue estimates. This disclosure triggered another sharp decline in the company’s stock, with shares falling by as much as $1.49 (32%) on Mar. 19, 2024.
“Among other matters, we’re focused on whether Comtech’s firing of CEO Ken Peterman was truly unrelated to the Company’s business strategy, financial results and prior financial statements,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Comtech Telecommunications and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Comtech Telecommunications investigation, read more »
Whistleblowers: Persons with non-public information regarding Comtech Telecommunications 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 844-916-0895 or email CMTL@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
