SHAREHOLDER ALERT: Kaskela Law LLC Announces Class Action Lawsuit Against Gogo Inc. and Encourages Investors with Losses in Excess of $50,000 to Contact the Firm
Aug. 07, 2018
RADNOR, Pa., Aug. 07, 2018 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Gogo Inc. (NASDAQ: GOGO) (“Gogo” or the “Company”) on behalf investors who purchased the Company’s common stock between February 27, 2017 and May 7, 2018, inclusive (the “Class Period”).
IMPORTANT DEADLINE: Investors who purchased Gogo’s common stock during the Class Period may, no later than August 27, 2018, seek to be appointed as a lead plaintiff representative of the class.
Gogo investors with investment losses in excess of $50,000 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740 for additional information or to discuss their important legal rights and options. Investors may also submit their information to the firm online at http://kaskelalaw.com/case/gogo/.
The shareholder class action complaint alleges that Gogo and certain other defendants made false and misleading statements during the Class Period and failed to disclose to investors that: (i) Gogo’s 2Ku antenna had more reliability issues than the public was led to believe; (ii) Gogo’s 2Ku antennas required costly installation and remediation challenges or required replacement due to deicing fluids from planes infiltrating the 2Ku system as well as manufacturing and software issues; and (iii) Gogo would not be able to meet its previously issued 2018 guidance. The complaint further alleges that, as a result of the foregoing, investors purchased Gogo’s common stock at artificially inflated prices during the Class Period and suffered significant investment losses following the Company’s disclosures.
On May 4, 2018, Gogo disclosed that it was “withdrawing its previously provided 2018 guidance for Adjusted EBITDA, airborne Cash CAPEX, and airborne equipment inventory purchases related to airline-directed installations, as well as Free Cash Flow guidance.” During a conference call that same day, Gogo’s CEO disclosed quarterly problems regarding product availability and coverage, with “the major cause [being] deicing fluid getting into the antenna raceways in which the antenna discs spin,” but that “while deicing was the biggest issue there are also some manufacturing issues and software issues.” Following this news, shares of the Company’s common stock declined $1.73 per share over two trading days, or over 18% in value, to close at $7.86 per share on May 7, 2018.
Subsequently, after Moody’s downgraded Gogo’s credit rating to reflect “the company’s weakening credit metrics, operational difficulties and deteriorating liquidity,” shares of Gogo’s common stock declined an additional $2.80 per share, or over 35% in value, to close at $5.06 per share on May 8, 2018.
Gogo investors are encouraged to contact Kaskela Law LLC at (888) 715 – 1740 or online at http://kaskelalaw.com/case/gogo/ for additional information about this action. Kaskela Law LLC exclusively represents investors in state and federal courts throughout the country. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.