SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Frontier Communications Corporation of Class Action Lawsuit and Upcoming Deadline - FTR
NEW YORK, NY / ACCESSWIRE / November 4, 2017 / Pomerantz LLP announces that a class action lawsuit has been filed against Frontier Communications Corporation ("Frontier" or the "Company") (FTR) and certain of its officers. The class action, filed in United States District Court, District of Connecticut, and docketed under 17-cv-01672, is on behalf of a class consisting of investors who purchased or otherwise acquired Frontier securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Frontier securities between April 1, 2016, and May 2, 2017, both dates inclusive, you have until November 27, 2017, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here to join this class action]
Frontier provides communications services in the United States, including broadband, video, and voice services. According to the Company, it acquired the wireline operations of Verizon Communications, Inc. (the "Verizon Acquisition") in California, Texas, and Florida on April 1, 2016, for a purchase price of $10.5 billion in cash and assumed debt. Throughout the Class Period, defendants allegedly failed to disclose the underperformance of the Verizon Acquisition.
The Complaint alleges that, throughout the Class Period, Defendants 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: (i) the Company acquired a substantial number of non-paying accounts as part of its acquisition of the wireline operations of Verizon Communications, Inc.; (ii) as a result, the Company would be required to increase its reserves, and write-off amounts from accounts receivable associated with the non-paying accounts; and (iii) as a result of the foregoing, Frontier's public statements were materially false and misleading at all relevant times.
On February 27, 2017, the Company disclosed a net loss of $80 million for the fourth quarter of 2016, and stated that its results were impacted by the "resolution of nonpaying acquired CTF accounts." Chief Executive Officer ("CEO") Daniel J. McCarthy ("McCarthy") elaborated, stating, "Results for the fourth quarter were impacted by our intensified efforts to resolve acquired accounts in California, Texas, and Florida that we have determined to be non-paying."