CenturyLink, Inc. Securities Class Action
Company: CenturyLink, Inc. (NYSE:CTL)
Class Period: March 1, 2013 – June 16, 2017
Lead Plaintiff Deadline: August 21, 2017
Court: Southern District of New York, No. 17-cv-04740
WASHINGTON, DC (July 18, 2017) — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed on behalf of purchasers of CenturyLink, Inc. common stock. The lawsuit seeks to recover damages for CenturyLink investors under the federal securities laws.
Any member of the putative class may move the Court to serve as lead plaintiff through attorneys of their choice, or may choose to do nothing and remain an absent class member. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in CenturyLink common stock during the Class Period. Members of the class will be represented by the lead plaintiff and attorneys chosen by the lead plaintiff.
If you wish to choose attorneys to represent you and the class, you must apply to be appointed lead plaintiff no later than August 21, 2017. If you wish to join the litigation, complete the contact form below to be contacted by an attorney to discuss your rights or interests regarding this class action. There is no obligation or cost to you.
CenturyLink is an integrated communications company engaged primarily in providing an array of services to residential and business customers. Its communications services include local and long-distance voice, broadband, Multi-Protocol Label Switching, private line, Ethernet, colocation, hosting, data integration, video, network, public access, Voice over Internet Protocol, information technology and other ancillary services.
About the Lawsuit
According to the initial lawsuit complaint, throughout the Class Period, throughout the Class Period, Defendants failed to disclose that: (1) CenturyLink policies’ had engaged the Company in unlawful business practices by allowing its employees to add services or lines to accounts without customer permission, resulting in millions of dollars in unauthorized charges to CenturyLink customers; (2) accordingly, the Company’s revenues contained ill-gotten gains that originated from the Company’s illicit conduct and were unsustainable; and (3) the foregoing illicit conduct was likely to subject CenturyLink to heightened regulatory scrutiny; and (4) as a result of the foregoing, Defendants’ statements about CenturyLink’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On June 16, 2017, reporters Polly Mosendz and Scott Moritz from Bloomberg wrote an article entitled “CenturyLink Is Accused of Running a Wells Fargo-Like Scheme.” The article described Defendant CenturyLink’s unlawful business practices, stating in relevant part:
A former CenturyLink Inc. employee claims she was fired for blowing the whistle on the telecommunications company’s high-pressure sales culture that left customers paying millions of dollars for accounts they didn’t request, according to a lawsuit filed this week in Arizona state superior court.
As the truth was fully revealed to investors, the Company’s share price declined $1.23 per share from $26.95 per share of CenturyLink stock on June 15, 2017, to close at $25.72 per share on June 16, 2017, a drop of approximately 4.5%.
On June 19, 2017, the Bloomberg reporters wrote a second article “CenturyLink Faces Class-Action Lawsuit Seeking Up to $12 Billion.” The article stated in relevant part:
The new lawsuit, filed in the central district of California late Sunday night, cites Heiser’s suit, as well as similar accusations posted on social media and consumer review websites by people identifying themselves as CenturyLink customers, and accuses CenturyLink of fraud, unfair competition, and unjust enrichment.
“Ms. Heiser’s allegations of what she observed, and what CenturyLink corporate culture encouraged, are consistent with the experiences of hundreds of thousands and potentially millions of consumers who have been defrauded by CenturyLink,” the complaint states. “It is estimated that the damages to consumers could range between $600 million and $12 billion, based on CenturyLink’s 5.9 million subscribers.”