NEW YORK, March 06, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Western District of Louisiana on behalf of all persons or entities who purchased the securities of Lumen Technologies, Inc. (“Lumen” or the “Company”) (NYSE: LUMN) between September 14, 2020 and February 7, 2023, both dates inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) various headwinds were impeding Lumen’s ability to invest in and grow its Quantum Fiber brand; (ii) Quantum Fiber was not progressing as was represented to the public; (iii) Lumen’s management was reassessing its strategic priorities and had placed a hold on the plans to quickly scale up the Quantum Fiber brand; and (iv) as a result of Lumen’s decision to delay expansion of Quantum Fiber, Lumen’s results and metrics were negatively impacted and the scaling up of Quantum Fiber would not occur until, at the earliest, the end of 2023.
On February 9, 2022, Lumen revealed the negative effects of stressed supply chains on Lumen’s operations and confirmed that those supply chain obstacles negatively impacted operations regarding Quantum Fiber. On this news, Lumen’s stock price declined more than 15%.
Then, on November 2, 2022, Lumen revealed further delays in the Quantum Fiber build, acknowledging that Quantum Fiber was “not yet where we want to be” and that Lumen has “much more to do.” Lumen further revealed that it “slowed some of [its] [digital] transformation[s]” while undertaking a series of divestiture transactions. On this news, Lumen’s stock price declined nearly 18%.
Finally, on February 7, 2023, Lumen revealed that work on Quantum Fiber had hit the “stop button” and acknowledged that its “location and subscriber results were impacted by the [Quantum Fiber] pause we had in place.” On this news, Lumen’s stock price declined nearly 21%, further damaging investors.
Investors who purchased or otherwise acquired shares of Lumen should contact the Firm prior to the May 2, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.