World News: 01:12 GMT Thursday 10th October 2019. [Hagens Berman Sobol Shapiro LLP via Globe Newswire via SPi World News]
SAN FRANCISCO, Oct. 09, 2019 (GLOBE NEWSWIRE) -- Hagens Berman reminds investors in Sonim Technologies Inc. (NASDAQ: SONM) of the federal securities class action recently filed against the company and urges SONM investors who have suffered losses in excess of $25,000 to contact the firm.
On May 10, 2019, Sonim conducted its IPO, selling over 3.5 million shares of stock individually priced at $11.00. Integral to the IPO’s success was the company’s Registration Statement, which made positive statements concerning the features and functionality of Sonim’s mobile phones and accessories. Thereafter, Sonim made similar representations about its mobile phone devices and its stock steadily climbed, trading over $18 in June 2019.
The truth emerged on September 10, 2019, when Sonim’s management disclosed that “the company has experienced technical challenges related to its [flagship] XP8 smartphone . . ., which cumulatively resulted in lost sales momentum.” The company also lowered guidance and also announced the abrupt resignation of CFO Jim Walker. On this news, the price of SONM shares plummeted $3.30, or 47%, in a single trading day.
On October 7, 2019, a federal securities class action was filed on behalf of all Sonim investors that purchased shares in the May 2019 IPO, and alleges claims under the Securities Act of 1933.
Hagens Berman, however, is also investigating whether Sonim and its senior officials engaged in a more expansive securities fraud giving rise to additional claims under the Securities Exchange Act of 1934.
“We’re focused on investors’ losses and whether senior management concealed problems with Sonim’s XP8 smartphones and other devices,” said Hagens Berman partner Reed Kathrein.
Globe Newswire: 01:12 GMT Thursday 10th October 2019
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