Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Switch, Inc. (NYSE:SWCH) in connection to alleged violations of securities laws by SWCH. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Switch, Inc., in particular, Class A common stock pursuant to its initial public offering, between October 3, 2017 and June 11, 2018.
The class action complaint specifically alleges that during the period in question, SWCH might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that the company’s facilities in Grand Rapids, Michigan and Atlanta, Georgia would never reach the same profitability of its Las Vegas, Nevada facility; that this reduced the yield on the company’s capital expenditures which will be borne by the acquisition and building out of those facilities; that the company’s high capital expenditures, made to generate high redundancy levels at these facilities, were not attaining the same profitability that they had previously; that the company had spent more than $64 million in additional funds on un-budgeted capital expenditures in Q3 2017, and that it had not disclosed these expenditures to its investors until after its initial public offering; that the company recognized revenues of $9.4 million in fiscal year 2017 for which it would not provide colocation services until fiscal year 2018; that consequently it had overstated its reported revenue growth for FY17, as well as its revenue prospects for FY18; that the company’s biggest colocation customer, eBay, was not going to possess its reserved colocation space at the company’s facility in Tahoe/Reno at the beginning of 2018; and that consequently the company’s business and financial prospects at the time of its IPO did not match with representations made in its Registration Statement. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, Switch, Inc. is a “technology infrastructure ecosystem corporation whose core business is the design, construction and operation of the most advanced data centers, which are the foundations of the most powerful technology ecosystems on the planet.” Founded in 2000, the company builds and operates data centers and has more than 500 issued patents or pending patent claims. It is headquartered in Las Vegas, Nevada and trades on the New York Stock Exchange under the symbol SWCH.
A class action lawsuit has already been filed in connection with Switch, Inc. If you wish to serve as lead plaintiff in the SWCH lawsuit, you must move the Court no later than August 10, 2018. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.