This is a securities class action against Synchronoss Technologies, Inc., its President, CEO and Chairman and its CFO and Treasurer.
Synchronoss is a provider of on-demand multi-channel transaction software management platforms that enable communications service providers to automate new subscriber activation, order management and service provisioning.
The class action complaint alleges that during the Class Period, Synchronoss made fraudulent material misrepresentations and omissions regarding Synchronoss's business and operations. Synchronoss provides technology to AT&T, Inc. that allows AT&T, as the exclusive United States service provider of the Apple iPhone, to "lock" Apple iPhones distributed to AT&T's wireless phone customers.
The class action complaint alleges that during the Class Period, Synchronoss failed to disclose to investors numerous warning signs that the unlocking of iPhones jeopardized Synchronoss's iPhone contract with AT&T. While Apple iPhones were extensively being unlocked for use with other wireless carriers, Synchronoss continued to maintain that its future prospects for growth were positive.
However, on June 9, 2008, AT&T announced Synchronoss would not be activating the iPhone 3G, which was released in July of 2008. Rather, the iPhone 3G is activated in-store, effectively removing Synchronoss from the transaction altogether. On this news, Synchronoss stock fell from $13.31 to $11.03, a 17.1% decline.
Name (Stock Symbol)
Synchronoss Technologies, Inc. (SNCR)
Synchronoss Technologies, Inc. provides multi-channel transaction management solutions to the communications services and digital content marketplaces.
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