GTT - Bronstein Gewirtz & Grossman LLC Announces Investigation of GTT Communications Inc. (GTT)
NEW YORK, Aug. 6, 2019 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of GTT Communications, Inc. ("GTT" or the Company") (NYSE: GTT). Investors who purchased GTT securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: www.bgandg.com/gtt.
The investigation concerns whether GTT and certain of its officers and/or directors have violated federal securities laws.
In February 2018, GTT announced that it was purchasing Interoute Communications Holdings S.A. ("Interoute") in a transformative acquisition for €1.9 billion ($2.3 billion) in cash. On May 8, 2019, GTT disclosed a larger-than-expected loss for the first quarter of 2019, including a sequential decline in revenues. GTT blamed its poor performance on a host of issues with the Interoute integration, including migrating legacy systems into GTT's management database, discrepancies with Interoute's billing systems, and a poor salesforce. In addition, GTT disclosed that shortly before the acquisition, Interoute had made a strategic shift to sell cloud services that deviated from GTT's strategy of focusing exclusively on cloud networking. On this news, GTT's stock price fell $7.04 per share, or 17.5%, to close at $33.25 per share on May 8, 2019. GTT's stock price continued to fall the following day, closing at $29.91 per share, for a two-day decline of over 25%. On May 30, 2019, GTT made a presentation at the Cowen TMT Conference 2019, in which the Company disclosed that the Interoute integration was "challenging … as we moved thousands of Interoute employees off of the Interoute systems and off of how they sold, installed, billed and moved everything into GTT systems there [were] some delays as we both went to render a new bill to the customers who are going to be getting a GTT bill instead of an Interoute bill." On this news, GTT's stock price fell $1.22 per share, or 4.9%, to close at $23.78 per share on May 31, 2019. On June 24, 2019, analysts at Craig-Hallum reduced their price target on GTT because "the company is in the midst of altering its DNA, which had been largely built of growth via acquisitions, a process that has been challenged by debt levels and recent integration issues." Craig-Hallum noted that instead of continuing its roll-up strategy, GTT is now trying to "rebuild its organic growth platform" by hiring a new salesforce. On this news, GTT's stock price fell $2.87 per share, or 12.6%, to close at $19.97 per share on June 24, 2019. Finally, on July 2, 2019, KeyBanc downgraded GTT and highlighted how internal data on GTT suggested hiring activity remained slow, indicating the increase in employee representatives necessary to achieve revenue targets might be lower than expected. KeyBanc also reported on recent leadership changes in the Americas division, noting that they were "an indication that organizational health is not great." On this news, GTT's stock price fell $0.50 per share, or 2.7%, to close at $18.30 per share on July 2, 2019.
If you are aware of any facts relating to this investigation, or purchased GTT shares, you can assist this investigation by visiting the firm's site: www.bgandg.com/gtt. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
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