Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, announces that a federal class action lawsuit has been filed against Frontier Communications Corporation (“Frontier” or “Company”) (NasdaqGS: FTR) and several officers and directors for acts taken during the period of April 1, 2016 and May 2, 2017 (the “Class Period”).
Based upon the allegations in the class action, the firm is investigating additional legal claims against the officers and Board of Directors of Frontier. If you are an affected Frontier shareholder and want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC via email at firstname.lastname@example.org or call toll free at (888) 809-2750. There is no cost or fee to you.
According to the complaint, the defendants are alleged to have violated certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges, among other things, that defendants issued false and/or misleading statements and/or failed to disclose the following: (1) that Frontier acquired a substantial number of non-paying accounts as part of its acquisition of the wireline operations of Verizon Communications, Inc.; (2) that Frontier would be required to increase its reserves, and write off amounts from accounts receivable associated with the non-paying accounts; and (3) that as a result of the above, Frontier’s statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis at all relevant times.
On May 2, 2017, Frontier reported a first quarter 2017 net loss of $75 million and a year-over-year first quarter revenue decline of $53 million. That same day, Frontier held a conference call to discuss its first quarter financial results. During that call, Ralph McBride, Frontier’s Chief Financial Officer, stated that approximately $16 million of the sequential revenue decline was a result of cleanup of California, Texas, and Florida non-paying accounts and the automation of legacy non-pay disconnects. On this news, Frontier stock dropped significantly.
The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.