Public records indicate that a class action lawsuit has been filed on behalf of investors in Fusion Connect (OTC:FSNN) in connection to alleged securities law violations by FSNN. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Fusion Connect between August 14, 2018, and April 2, 2019.
The class action complaint specifically alleges that during the period in question, FSNN provided false and/or misleading material information and/or failed to disclose adverse material information to the public, namely: that imprecision in the process by which certain of its subsidiaries made capitalizations of costs resulted in overstatements in its earnings for the quarters ending June 30, 2018, and September 30, 2018; and that consequently the company’s statements to the public during the relevant period were false and misleading. Specifically, the complaint alleges that the company’s Birch Holdings subsidiaries used an imprecise capitalization process in connection with its customer on-boarding procedures that led to overstatements of earnings or net loss between $1.7 million and $2.3 million in the quarter ending on June 30; and between $3.4 million and $4.1 million in the quarter ending on September 30. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, Fusion Connect is a technology company that provides “integrated cloud solutions” for enterprise customers of all sizes. It describes its “advanced, proprietary service platform” as enabling “leading edge” cloud solutions, such as voice and communications, connectivity, storage, and computing. In June 2019 the company announced that it had entered into a Restructuring Support Agreement with “lenders holding more than 66.67% of the aggregate outstanding principal amount of its first lien loans.” Its Chairman and CEO said in a statement, “”We are grateful for the continued financial support of our lenders and the continued support, loyalty and trust of our stakeholders, and we are confident that we will emerge stronger than ever.” The company is headquartered in New York, New York and trades over-the-counter under the symbol FSNN.