HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, REMINDS PARETEUM (TEUM) INVESTORS OF ONGOING INVESTIGATION: Firm Investigating Possible Securities Fraud at Pareteum, Investors with $100K+ Losses Should Contact Firm Now
SAN FRANCISCO, Oct. 21, 2019 /PRNewswire/ -- Hagens Berman reminds investors in Pareteum Corporation (NASDAQ: TEUM) of the firm's ongoing investigation of possible violations of federal securities laws. The firm urges TEUM investors who have suffered losses in excess of $100,000 to submit your loss now to learn if they qualify to recover their investment losses.
Relevant Holding Period: Before Oct. 15, 2019 |
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Sign Up Now: www.hbsslaw.com/investor-fraud/TEUM |
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Contact An Attorney Immediately: |
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510-725-3000 |
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Pareteum Corporation (TEUM) Investigation:
The firm's investigation concerns the accuracy of the Company's reported financial results.
On June 7, 2019, Marcus Aurelius Value published a report questioning the propriety of Pareteum's accounting and statements about its backlog, backlog conversion rates, and receivables. The report concluded, "[w]e see massive downside potential and believe the stock is completely uninvestible."
Next, on June 25, 2019, Viceroy Research Group published a report identifying several sources of "uncollectable" revenue presented in Pareteum's financial results, concluding that "total revenue is overstated by 42%."
Then, on August 26, 2019, cash-strapped Pareteum announced that as a condition of obtaining $2.5 million in financing, the Company was forced to issue 750,000 shares to its senior secured creditor, thereby diluting existing shareholders.
On October 15, 2019, the Company announced the termination of Pareteum's Chief Operating Officer Denis McCarthy, who reportedly played a central role in disseminating the Company's 36-Month-Contract-Backlog, the metric under intense scrutiny.
"We're focused on investors' losses and whether the company inflated its reported revenues," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Pareteum 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 510-725-3000 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, 510-725-3000
SOURCE Hagens Berman Sobol Shapiro LLP
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