SAN FRANCISCO, March 28, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Comtech Telecommunications Corp. (NASDAQ: CMTL) investors who suffered substantial losses to submit your losses now.
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Comtech Telecommunications Corp. (CMTL) Investigation:
Shares in Comtech are trading down more than 70% since early Dec. 2023 after the Melville, New York-based telecommunications company has revealed a series of disappointing news, causing the company’s stock to plummet and prompting leading investor rights firm Hagens Berman to open an investigation into possible violations of the U.S. securities laws.
Over the past year, Comtech CEO Ken Peterman repeatedly touted the “One Comtech” strategy implemented under his leadership, which unified the company’s 14 independent, siloed businesses and reportedly spurred Comtech to posting five consecutive quarters of revenue growth.
But cracks in the Company’s façade of success began to emerge on Dec. 7, 2023, when the company disclosed a “going concern” that its cash flow will be enough to fund operations over the next 12 months and repay a credit facility due in Oct. 2024. This news sent the price of Comtech shares crashing $3.71, or 29% lower on Dec. 8, 2023.
Then, on Mar. 13, 2024, Comtech announced that its board of directors fired Peterman for cause. Though the company claimed the firing was unrelated to the company’s business strategy or financial results, Comtech provided some color for the reason for Peterman’s ouster by stating, “The Board is committed to upholding the highest standards of ethical and professional conduct.”
The company also announced that it would not timely file its quarterly financial statements with the SEC. This news sent the price of Comtech shares down $1.57, or 27% lower that day.
Then, on Mar. 18, 2024, under the interim CEO, Comtech reported dismal Q2 2024 financial results. For the quarter, Comtech posted revenue of only 134.2 million, which badly missed consensus estimates and represented a 12% decrease over the prior quarter.
In downgrading Comtech, analysts at Jeffries expressed concern about the company’s burgeoning unbilled receivables (i.e., revenue the company had recognized before invoicing the end customer).
This news sent the price of Comtech shares down as much as $1.49, or 32% lower during intraday trading on Mar. 19, 2024.
“The investigation centers 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
