On February 6, 2018, Pomerantz LLP was appointed Co-Lead Counsel in a class action lawsuit filed against Sequans Communications S.A. (“Sequans” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Eastern District of New York, and docketed under 17-cv-04707, is on behalf of a class consisting of investors who purchased or otherwise acquired Sequans’ American Depositary Receipts (“ADRs”) securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Sequans Communications SA is a fabless designer, developer and supplier of 4G semiconductor solutions for wireless broadband applications. The Company's solutions incorporate baseband processor and radio frequency, or RF, transceiver integrated circuits, or ICs, along with its proprietary signal processing techniques, algorithms and software stacks.
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, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was improperly recognizing revenue; and (ii) as a result of the foregoing, Sequans’ public statements were materially false and misleading at all relevant times.
On August 1, 2017, the Company issued a press release entitled “Sequans Communications Announces Second Quarter 2017 Financial Results,” announcing the financial results for the quarter ended June 30, 2017. Sequans reported revenue of $13.2 million, citing “a reduction of $740,000 related to a product return from an early 2016 tablet-related sale.”
On this news, Sequans’ ADR price fell $0.67, or 18.21%, to close at $3.01 on August 1, 2017, damaging investors.