Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action has been filed against Synacor, Inc. in the United States District Court for the Southern District of New York

NEW YORK, April 12, 2018 -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed against Synacor, Inc. (“Synacor” or the “Company”) (NASDAQ:SYNC) and certain of its officers. The class action, filed in the United States District Court for the Southern District of New York, is on behalf of a class consisting of investors who purchased or otherwise acquired Synacor securities between May 4, 2016 and March 15, 2018, both dates inclusive (the “Class Period”).

Investors who have incurred losses in shares of Synacor, Inc. may contact the firm at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the firm on our website, www.whafh.com.

The filed Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:

• Synacor was unlikely to receive significant revenues from the AT&T Contract until 2018;
   
• as such, the Company’s revenue forecasts issued during the Class Period were materially false and misleading; and
  
  
• as a result of the foregoing, Synacor shares traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.

On August 9, 2017, after the close of trading, Synacor issued a press release entitled “Synacor Exceeds Second-Quarter 2017 Financial Guidance; Remains on Path to ‘3/30/300,’” announcing its financial results for the quarter ended June 30, 2017. 

The press release stated in part: “The joint AT&T-Synacor team has made the strategic decision to prioritize portal engagement right now over monetization. We are seeing the results of this focus in deeper engagement metrics. We are already generating revenue from this new consumer experience, but we expect that additional monetization tactics will be turned on at a more deliberate pace, which will result in a longer ramp to full monetization. As a result, a significant portion of the revenue that we were expecting in Q3 and Q4 this year is delayed to 2018, and we are adjusting our financial guidance for 2017 accordingly. We believe that this engagement-focused strategy ultimately leads to a stronger, more sustainable business.” 

On this news, Synacor’s share price fell $1.15, or 32.39%, to close at $2.40 on August 10, 2017.

On March 15, 2018, post-market, Synacor held a conference call with analysts and investors to discuss the Company’s fourth-quarter earnings. During the call, the CEO discussed the shortcomings of the AT&T contract.

On this news, Synacor’s share price fell an additional $0.30, or 14.63%, to close at $1.75 on March 16, 2018.

Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website at www.whafh.com.

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Contact:

Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774

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