Robbins Umeda LLP Announces the Filing of a Class Action Suit Against Sequans Communications S.A.
Robbins Umeda LLP, a shareholder rights litigation firm, announces the filing of a federal securities class action by an investor in the U.S. District Court for the Southern District of New York on behalf of purchasers of Sequans Communications S.A. (NYSE: SQNS) American Depositary Shares between April 15, 2011 and July 27, 2011 (the “Class Period”).
The complaint alleges that beginning on April 15, 2011, certain officers and directors at Sequans issued a series of positive statements to investors about the business condition, future prospects, and true performance of the company that were materially false and misleading, and that were designed to artificially inflate the value of the company. In particular, the complaint alleges that officials at Sequans withheld material adverse facts about declining revenue from its WiMAX product line, the decreasing demand for WiMAX in the 4G market, the ability of Sequans to generate revenue in the 4G LTE market, and the company’s growing dependency on sales to HTC, its largest customer.
On July 28, 2011, Sequans released its second quarter results for fiscal year 2011. These results were in stark contrast to optimistic statements made by officials, and seemed to confirm that the company was performing well below expectation. On this news, the company’s stock lost $6.88 per share, or 45% of their value, to close on July 28, 2011 at just $8.55. As more allegations continue to surface, the value of Sequan’s stock continues to decline; after trading as high as $15.43 on July 27, 2011, shares of Sequan closed on September 12, 2011 at just $4.83 per share.
If you invested in Sequans during the Class Period and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.