Securities Lawsuit Investigation | Company: Sequans Communications S.A. | For: Misleading Sales Forecasts, Failure to Disclose Information, Artificially Inflated Stock Prices | Failure to Disclose, IPO, Stock Fraud
Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Sequans Communications S.A. violated the Securities Act of 1933 and the Securities Exchange Act of 1940. Sequans Communications, with headquarters in France and U.S. operations based in Minnesota, is a designer, developer and supplier of 4G semiconductor solutions for wireless broadband applications.
If you purchased or otherwise acquired American Depository Shares (ADSs) for Sequans’ Initial Public Offering (IPO) between April 15, 2011 and July 27, 2011, and lost money or believe you were defrauded, contact Gilman Law LLP to discuss your rights, including recovery of your losses. For over 40 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm handles cases involving stock manipulation, securities fraud, and shareholder rights violations.
You may also be entitled to a PSLRA (Private Securities Litigation Reform Act) claim. PSLRA claims need to be filed by no later than November 22, 2011. Under PSLRA, a plaintiff must file a claim for securities fraud within a 60 day time period and must also have ” the largest financial interest in the relief sought by the class” and “otherwise satisfies the requirements of Rule 23 of the Federal Rules of Civil Procedure.” PSLRA is one of five actions that can be taken.
Sequans Misleading Sales Forecasts due to assurances To Meet Financial Goals For 2011 Despite Declining Sales
The shareholder lawsuit alleges that Sequans repeatedly assured investors that it was well positioned to meet financial goals for 2011 due to the growing demand of 4G devices. These assurances were made despite declining sales of Sequans’ products.
Sequans Failure to Disclose Information: Revenues From Sequans’ WiMAX Products Were Declining Not Told To The Investing Public
The shareholder lawsuit alleges that at the time of the IPO, Sequans failed to disclose to the investing public that revenues from Sequans’ WiMAX products were declining. Additionally, the suit alleges that Sequans failed to disclose that it was not positioned to generate any meaningful revenues from sales of 4G LTE products until late 2012. The suit further alleges that Sequans’ largest customer, HTC, and the industry in general, was focusing more on 4G LTE offerings as opposed to WiMAX offerings, including the WiMAX products offered by Sequans. Sequans also failed to disclose that it would not experience sales growth during 2011 and, in fact, would experience sales declines during that period, including the continuing decline in sales to its largest customer, HTC.
Sequans Artificially Inflated Stock Prices due to misleading sales projections and non-negative business trends
Sequans’ misleading sales projections in combination with its failure to disclose negative business trends, lead to artificially inflated stock prices. On July 28, 2011, Sequans announced financial results for the second quarter of 2011 well below expectations. As a result of this news, the value of Sequans’ shares dropped drastically.
Gilman Law LLP is one of the country’s premier national law firms that represents institutional and individual investors in class actions, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of fraudulent practices. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or call Toll Free 1-888-252-0048.
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