Pomerantz LLP is investigating claims on behalf of investors of Gogo Inc. ("Gogo" or the "Company"). The investigation concerns whether Gogo and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On May 4, 2018, Gogo held a conference call to discuss its financial and operating results for the first quarter of 2018. During the call, Gogo's Chief Executive Officer Oakleigh Thorne disclosed the impact of installation and remediation challenges associated with aircraft deicing fluids infiltrating the Company's 2Ku antenna systems. Gogo stated that "[a]djusted EBITDA is expected to be below the previously provided range of $75 million to $100 million due to increased costs and lost revenue" related to the foregoing issues. On this news, Gogo's share price fell $1.73, or over 18%, over the next two trading days, closing at $7.87 on May 7, 2018. On May 7, 2018, post-market, Moody's Investors Service downgraded Gogo's credit rating. On this news, Gogo's share price fell an additional $2.81, or 35.66%, to close at $5.06on May 8, 2018.