NEW YORK, Aug. 07, 2018 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. reminds investors that the Firm is investigating potential claims against certain officers and directors of Synacor, Inc. (NASDAQ : SYNC) (“Synacor” or the “Company”).
In April 2018, investors in Synacor brought a class action against the Company in federal court alleging that between May 4, 2016 and March 15, 2018, the Company made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Synacor was unlikely to receive significant revenues from the AT&T Contract until 2018; (2) as such, the Company’s revenue forecasts issued during the Class Period were materially false and misleading; and (3) as a result of the foregoing, Synacor shares traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
On August 9, 2017, post-market, Synacor issued a press release entitled “Synacor Exceeds Second-Quarter 2017 Financial Guidance; Remains on Path to ‘3/30/300,’” announcing its financial results for the quarter ended June 30, 2017. The press release stated in relevant part: “[T]he joint AT&T-Synacor team has made the strategic decision to prioritize portal engagement right now over monetization. We are seeing the results of this focus in deeper engagement metrics. We are already generating revenue from this new consumer experience, but we expect that additional monetization tactics will be turned on at a more deliberate pace, which will result in a longer ramp to full monetization. As a result, a significant portion of the revenue that we were expecting in Q3 and Q4 this year is delayed to 2018, and we are adjusting our financial guidance for 2017 accordingly. We believe that this engagement-focused strategy ultimately leads to a stronger, more sustainable business,” concluded Bhise.
On this news, Synacor’s share price fell $1.15, or 32.39%, to close at $2.40 on August 10, 2017.
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, Defendant Bhise discussed the shortcomings of the AT&T contract.
On this news, Synacor’s share price fell $0.30, or 14.63%, to close at $1.75 on March 16, 2018.
If you are a long term shareholder of Synacor, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning our investigation into Synacor, Inc. please go to http://www.bespc.com/sync/. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com