NEW YORK (Legal Newsline) - An investor is suing a cloud communications company and two of its executive officers, alleging they misrepresented they company's financial performance to investors.
James Gormley, individually and for all others similarly situated, filed a class action lawsuit March 11 in U.S. District Court for the Southern District of New York against magicJack VocalTec, Gerald Vento, and Jose Gordo, alleging violations of federal securities laws.
The suit alleges from Nov. 12, 2013, to March 12, 2014, the defendants misrepresented magicJack's expected financial performance, understating the company's adjusted EBITDA projection, thereby depressing the company's stock price.
On March 12, 2014, after the market's close, the lawsuit states, the company announced its fourth quarter and full-year 2013 financial results, reporting adjusted EBITDA higher than the previously stated expected range.
As a result, the complaint states, magicJack's stock price jumped more than 20 percent, damaging those who had sold the stock based on previous misleading information.
Gormley and others in the class seek a jury trial, damages, interest, equitable and injunctive relief, attorney fees and other costs of the suit. They are represented by attorneys Nicholas I. Porritt, Adam M. Apton and Michael B. Ershowsky of Levi & Korsinsky LLP in New York.
U.S. District Court for the Southern District of New York Case number 1:16-CV-01869-VM