Lumen Technologies, Inc.
|Company Name||Lumen Technologies, Inc.|
|Class Period||September 14, 2020 to February 07, 2023|
|Lead Plaintiff Motion Deadline||May 02, 2023|
On February 9, 2022, during the Company’s fourth quarter 2021 conference call, Lumen claimed that stressed supply chains had a negative effect on the Company’s operations, including operations related to Quantum Fiber. On this news, Lumen’s stock price fell $1.99, or 15.5%, to close at $10.83 per share on February 10, 2022, thereby injuring investors.
Then, on November 2, 2022, during the Company’s third quarter 2022 conference call, Lumen disclosed Quantum Fiber build delays, expressing that it was “not yet where [the Company] want[s] it to be” and that it has “much more to do.” On this news, Lumen’s stock price fell $1.25, or 17.7%, to close at $5.80 per share on November 3, 2022.
Then, on February 7, 2023, on a conference call to discuss the Company’s full year 2022 financial results, Lumen admitted that it had pressed “more of a stop button than a pause button” regarding the Quantum Fiber network while it reevaluated its strategic priorities. On this news, Lumen’s stock price fell $1.04, or 20.8%, to close at $3.95 per share on February 8, 2023, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) various headwinds were impeding the Company's ability to invest in and grow its Quantum Fiber brand; (2) Lumen's Quantum Fiber business was not progressing as was represented to the investing public; (3) Lumen's management was reassessing its strategic priorities and had placed a hold on the plans to quickly scale up the Quantum Fiber brand; (4) as a result of Lumen's decision to delay expansion of Quantum Fiber, the Company'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; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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