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Synacor, Inc. (SYNC)

NASDAQ:SYNC

Summary

Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Synacor, Inc. To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Synacor, Inc. (“Synacor” or the “Company”) (NASDAQ:SYNC) of the June 4, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in Synacor stock or options between May 4, 2016 and March 15, 2018 and would like to discuss your legal rights, please fill out the form below.  There is no cost or obligation to you.You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. 

The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Synacor securities between May 4, 2016 and March 15, 2018 (the “Class Period”).  The case, Lefkowitz v. Synacor, Inc. et al., No. 18-cv-02979 was filed on April 4, 2018.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by misrepresenting the ability of the company to receive significant revenue from its portal services contract with AT&T.

On May 4, 2016, the Company announced that it had selected AT&T as a provider of portal service in order to drive user engagement; the Company stated that revenues from the contract were expected to be approximately $100 million per year after product deployment was finalized in 2017.

On August 9, 2017 the Company released its financial results for the second quarter of 2017 which ended on June 30, 2017. The Company lowered its revenue guidance from 2017, down from a range of $160 million to $170 million, to a range of $140 million to $150 million.

After the announcement, Synacor’s share price fell from $3.55 per share on August 9, 2017 to a closing price of $2.40 on August 10, 2017—a $1.15 or a 32.39% drop.

Then, on March 15, 2018, post-market, Synacor held a conference call with analysts and investors to discuss the Company’s fourth-quarter earnings. During the call, CEO Himesh Bhise said, “Given this focus, in the last three quarters of 2017, we generated approximately $25 million in revenue from AT&T. We are expecting that AT&T will continue to focus on consumer experience, and as such, our 2018 guidance reflects the annualized 2017 run rate. Clearly, this forecast is below the $100 million annual revenue target that AT&T and Synacor announced when we first discussed the portal contract and was a critical element of Synacor's $300 million 2019 target.”

After the announcement, Synacor’s share price fell from $2.05 per share on March 15, 2018 to a closing price of $1.75 on March 16, 2018—a $0.30 or a 14.63% drop.

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  • Case:
    Synacor, Inc. (SYNC)
  •    

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Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 04/05/2018

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