Supercom Ltd (NASDAQ: SPCB) Investor Securities Class Action Lawsuit 12/09/2015

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Company Name(s): 
Supercom
Case Name: 
Supercom Shareholder Class Action Lawsuit 12/09/2015
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: SPCB
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/09/2015
Class Period Begin: 
01/21/2015
Class Period End: 
11/27/2015
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
02/08/2016
Summary: 

August 31, 2017 - Defendants filed a motion to dismiss.

October 7, 2016 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Supercom Ltd (NASDAQ: SPCB) common shares between January 21, 2015 and November 27, 2015. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between January 21, 2015 and November 27, 2015.

August 22, 2016 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

December 9, 2015 - An investor in shares of Supercom Ltd (NASDAQ: SPCB) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Supercom Ltd in connection with certain allegedly false and misleading statements made between June 1, 2015 and November 27, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Supercom Ltd (NASDAQ: SPCB) common shares between June 1, 2015 and November 27, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between June 1, 2015 and November 27, 2015 defendants failed to disclose that Supercom Ltd was having difficulty closing certain governmental sales and the revenue associated with those sales would be substantially delayed, that Supercom Ltd’s “pipeline” was neither strong nor “broadening,” and that, as a result, Supercom Ltd was not on track to achieve the financial results defendants had led the market to expect between June 1, 2015 and November 27, 2015.

Supercom Ltd reported that its annual Total Revenue rose from $8.82 million in 2013 to $29.70 million in 2014 and that its Net Income declined from $6.47 million in 2013 to $6.20 million in 2014. Shares of Supercom Ltd (NASDAQ: SPCB) grew from $7.57 per share in January 2015 to as high as $13.82 per share in June 2015.

On November 30, 2015, Supercom Ltd announced its preliminary third quarter revenue and updated its full year 2015 forcast. Supercom Ltd stated that its “‘financial performance in the third quarter and full-year were impacted by [its] inability to recognize more than $10 million of revenues that were expected this year, mainly due to delays associated with foreign government customers.’” Shares of Supercom Ltd (NASDAQ: SPCB) declined to as low as $4.54 per share on November 30, 2015.

On December 9, 2015, NASDAQ: SPCB shares closed at $5.05 per share.