Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Synchronoss Technologies, Inc. (SNCR)

NEW YORK, May 03, 2017 -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Synchronoss Technologies, Inc. (“Synchronoss” or the “Company”) (Nasdaq:SNCR) in the United States District Court for the District of New Jersey on behalf of a class consisting of investors who purchased or otherwise acquired Synchronoss stock on the open market from May 5, 2016, and April 27, 2017, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that the newly-acquired Intralinks was underperforming; (2) that the Company’s integration of other acquisitions was underperforming; (3) that the Company was facing serious hurdles integrating, and capitalizing on, its newly acquired companies; (4) that, as such, the Company’s guidance was overstated; and (5) that, as a result of the foregoing, Defendants’ statements about Synchronoss’ business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On April 27, 2017, the Company issued a press release entitled “Synchronoss Announces Management Changes; Company Issues Preliminary First Quarter 2017 Results.” Therein, the Company disclosed that it expected “total revenue for the first quarter of 2017 to be $13 million to $14 million less than the company’s previously announced guidance” and that it expected operating margins of 8% to 10% which was also less than previously announced guidance. The Company stated that it was “disappointed with [its] Q1 performance in this first quarter following our acquisition of Intralinks,” and further disclosed that its Chief Executive Officer (“CEO”), Ronald Hovsepian, and its Chief Financial Officer (“CFO”), John Frederick were leaving the Company.

On this news, the Company’s stock price fell $11.33 per share, or 46%, to close at $13.29 per share on April 27, 2017, on unusually heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than June 30, 2017.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].

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