According to the law firm press release, Synacor operates as a technology development, multiplatform services, and revenue partner for video, Internet, and communications providers, as well as device manufacturers, governments, and enterprises.
On May 4, 2016, Synacor announced that it had secured a three-year contract to host web and mobile services for AT&T Inc. (“AT&T” and the “AT&T Contract,” respectively).
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) Synacor was unlikely to receive significant revenues from the AT&T Contract until 2018; (ii) as such, the Company’s revenue forecasts issued during the Class Period were materially false and misleading; and (iii) as a result of the foregoing, Synacor shares traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
On July 6, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on July 27. Lead Plaintiff re-filed the amended Complaint on August 2. On October 17, the Court issued an Order substituting Lead Plaintiff's chosen Counsel as Lead Counsel. On November 2, Lead Plaintiff filed a second amended Complaint. Defendants filed a Motion to Dismiss the second amended Complaint on December 17. On August 28, 2019, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. On October 2, Plaintiffs filed a letter motion for leave to file a third amended Complaint. On November 15, the Court issued an Order denying Plaintiffs' motion to amend the Complaint. Plaintiff filed a notice appealing the Court's dismissal Order on December 16.