GTT Communications Inc (NYSE: GTT) Investor Securities Class Action Lawsuit 07/30/2019

If you purchased a significant amount of shares of GTT Communications Inc (NYSE: GTT) between February 26, 2018 and July 1, 2019, and / or if you purchased any NYSE: GTT shares prior to February 2018 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: September 30, 2019. NYSE: GTT investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
GTT Communications
Case Name: 
GTT Communications Shareholder Class Action Lawsuit 07/30/2019
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: GTT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
07/30/2019
Class Period Begin: 
02/26/2018
Class Period End: 
07/01/2019
Court of Filing: 
U.S. District Court for the Eastern District of Virginia
Deadline To File for Lead: 
09/30/2019
Summary: 

An investor in shares of GTT Communications Inc (NYSE: GTT) filed a lawsuit in the U.S. District Court for the Eastern District of Virginia over alleged violations of Federal Securities Laws by GTT Communications Inc in connection with certain allegedly false and misleading statements made between February 26, 2018 and July 1, 2019.

In February 2018, GTT Communications Inc announced that it was purchasing Interoute Communications Holdings S.A. (“Interoute”), a telecommunications company that operated Europe’s largest cloud services platform in a transformational $2.3 billion acquisition that essentially doubled GTT Communications Inc’s size.

On May 8, 2019, when GTT Communications Inc disclosed a larger than expected loss for the first quarter of 2019, including a sequential decline in revenues.

The plaintiff alleges that GTT Communications Inc blamed its poor performance on a host of issues with the Interoute Communications Holdings S.A. integration, including migrating legacy systems into GTT’s management database, discrepancies with Interoute Communications Holdings’ billing systems, and a poor salesforce. GTT Communications Inc further disclosed that shortly before the acquisition, Interoute Communications Holdings S.A. had made a strategic shift to sell cloud services that deviated from GTT’s core cloud networking business.

According to the complaint the plaintiff alleges on behalf of purchasers of GTT Communications Inc (NYSE: GTT) common shares between February 26, 2018 and July 1, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 26, 2018 and July 1, 2019, the GTT assured investors that it had conducted extensive due diligence on Interoute Communications Holdings S.A. , and the acquisition was a natural strategic fit for GTT—that the two companies “fit together almost hand in glove.” After the deal closed, GTT assured investors that Interoute Communications Holdings’ integration into the Company was “on track” and “not as complex” as many of the Company’s previous integrations.