GTT Communications, Inc.

  • Settled

Investigation
11/09/2020

Initial Lawsuit
01/12/2021

Lawsuit Progression
04/12/2021

Settlement
10/29/2021

Investigation

  • Continous Holding
    May 5, 2016 to November 9, 2020
  • Proposed Claim
    Securities Violation

Did GTT Communications mislead shareholders about adequate internal controls over financial reporting, including adjustments to its cost of telecommunication services?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

Accounting Problem

11/09/2020

SEC Filing

GTT explains delays in filings of quarterly report with ongoing examination of “the accounting for Cost of Telecommunications Services and [. . .] a number of issues in connection with the Company’s previously issued financial statements.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$3.96 $3.75 $0.21 5.6%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 01/12/2021

A GTT shareholder filed a securities class action on behalf of all persons or entities that purchased or otherwise acquired GTT publicly traded securities from May 5, 2016 through November 9, 2020, inclusive.

  • Filing Date
    01/12/2021
  • Class Period
    05/05/2016 to 11/09/2020
  • Transgression
    Securities Violation
  • Filing Firms
    The Rosen Law Firm, P.A.
  • Case Title
    Beteiligungs GmbH v. GTT Communications, Inc.
  • Docket Number
    2:21-cv-00270
  • Court
    California Central District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) the Company’s internal controls suffered from issues related to the recording and reporting of Cost of Telecommunications Services;
(ii) the Company’s previously reported Cost of Telecommunications was inaccurate or
accounted for unsupported adjustments;
(iii) inadequate internal controls would result in delays in the Company’s 10-Q quarterly reports;
(iv) as a result of the foregoing, Defendants’ public statements were materially false and/or misleading and/or lacked a reasonable basis.

Defendants

  • Company
    GTT Communications, Inc.
  • Chief Executive Officer
    Richard D. Calder, Jr.
  • Chief Executive Officer
    Ernie Ortega
  • Chief Financial Officer
    Michael T. Sicoli
  • Chief Financial Officer
    Daniel M. Fraser
  • Chief Financial Officer
    Steven Berns

Lawsuit progression

  • Docket Number
    2:21-cv-00270
  • Court
    California Central District Court

Lead Counsel

04/12/2021

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    The Rosen Law Firm, P.A.
  • Lead Plaintiff
    Company
  • Free File
    Order for lead

Amended Complaint

08/17/2021

Lead plaintiff brings this securities class action brought on behalf of all persons or entities that purchased or otherwise acquired GTT publicly traded securities from May 5, 2016 through July 30, 2021, both dates inclusive.

  • Updated Class Period
    05/05/2016 to 07/30/2021
  • Free File
    Amended Complaint

    • Operative complaint

Settlement

  • Proposed Settlement Filing Date
    10/29/2021
  • Preliminary approved settlement
    12/06/2021
  • Total Amout
    $2,000,000 in Cash
  • Approx. per Share
    $0.07
  • Fee Requested
    30%
  • Max. Expenses Requested
    $65,000
  • Claims Filing Deadline
    02/19/2022
  • Settlement Approval Date
    03/21/2022
  • Attorney Fees and Expenses Order Date
    03/21/2022
  • Attorney Fees Percentage
    30%
  • Attorney Expenses
    $40,238.30
  • Lead plaintiff award
    $7,500

Announce

On 10/29/2021, lead counsel The Rosen Law Firm, P.A. announced a proposed class action settlement.

Preliminary Approval

The court preliminarily approved the settlement on 12/06/2021. The settlement has a total value of $2,000,000 in Cash.

Am I included?

The notice states that you may be included, if you purchased or otherwise acquired the company’s publicly traded common stock during the period from 05/05/2016 to 07/30/2021, inclusive.

What is the estimated recovery?

According to the notice, the estimated average cash recovery per damaged share of common stock will be approximately $0.07 per share, before deduction of court-approved fees and expenses. Lead Counsel filed a motion for an award of attorneys’ fees not to exceed 30% of the $2,000,000 and payment of expenses not to exceed $65,000.

How can I file a claim?

For information purposes only, last updated on 04/13/2022. Contact the claims administrator or lead counsel for further information.

Source

Final Approval

The court approved the settlement on 03/21/2022.

Source

Attorney Fees & Expenses

On 03/21/2022, the court awarded lead counsel fees and reimbursement of expenses. The court awarded attorney fees of 30% of the total value of settlement (or $600,000) plus litigation expenses of $40,238.30. The lead plaintiff was awarded $7,500.

[stockdio-historical-chart symbol=”GTT” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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