HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Crown Castle (CCI) Investors Who Have Suffered Losses to Contact its Attorneys: Firm Investigating Possible Securities Fraud
SAN FRANCISCO, Feb. 27, 2020 /PRNewswire/ -- Hagens Berman urges investors in Crown Castle International Corp. (NYSE: CCI) who have suffered significant losses to submit their losses now. The firm is investigating possible securities law violations, and certain investors may have valuable claims.
Relevant Holding Period: Before Feb. 27, 2020 |
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Sign Up: www.hbsslaw.com/investor-fraud/CCI |
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Contact An Attorney Now: |
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844-916-0895 |
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Crown Castle International Corp. (CCI) Investigation:
The investigation concerns the propriety of Crown Castle's accounting policies relating to the Company's services business.
In past quarters, Crown Castle represented that it complied with GAAP and affirmed the effectiveness of its internal control over financial reporting.
But on Nov. 4, 2019, Crown Castle revealed that the SEC had subpoenaed certain documents dating back to 2015, questioning the Company's capitalization and expense policies for tenant upgrades and installations in its services business.
Then on Feb. 26, 2020, Crown Castle disclosed that for years it has been improperly recognizing services revenue. Specifically, the Company admitted to recognizing the entirety of the transaction price from its tower installation servicers as revenue upon the completion of the installation services. GAAP, however, mandates that portions of the transaction price – those associated with permanent improvements – be recognized on a ratable basis. As a result, net income in 2019 had been overstated by approximately $100 million, and its previous 2020 outlook for net income would need to be reduced by $90 million. In addition, due to the errors, the Company divulged that it would be restating its financials for 2016-2018, as well as for the first three quarters of fiscal year 2019. Finally, the Company revealed its internal control over financial reporting and disclosure controls and procedures were ineffective as of Dec. 31, 2019.
This news sent the price of Crown Castle shares sharply lower on Feb. 27, 2020.
"We're focused on investors' losses and whether Crown Castle intentionally misled investors with its admittedly faulty service business accounting," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Crown Castle and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Crown Castle should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Contact:
Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP
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