Tech Co. Investors Can't Sue Over AT&T Contract Projections
Law360 (August 28, 2019, 5:22 PM EDT) -- Digital authentication company Synacor escaped a proposed investor class action over its revenue projections for its contract with AT&T Wednesday when a New York federal judge ruled the shareholders didn’t sufficiently argue their securities fraud claims.
U.S. District Judge Lorna Schofield deemed the alleged misstatements made by Synacor about its financial expectations to be either matters of opinion or forward-looking statements protected by the Private Securities Litigation Reform Act’s safe harbor.
“Plaintiffs argue that defendants must have known the revenue projections were false and misleading because, by mid-2017, defendants knew that AT&T wanted to 'prioritize engagement over monetization,'" she said. “The...
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