The Class: Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Lumen Technologies, Inc. (NYSE: LUMN) securities between September 14, 2020 and February 7, 2023, for violations of the Securities Exchange Act of 1934. Lumen, formerly CenturyLink Inc. (NYSE: CTL), is a communications company.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Lumen. Shareholders who want to act as lead plaintiff for the class must file their papers by May 2, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Lumen Technologies, Inc. (LUMN) Misled Investors Regarding its Expansion into SMB and Residential Markets
According to the complaint, during the class period, defendants represented that Lumen was, among other things, “investing heavily in our consumer fiber business” and “aggressively taking market share in our small business segment.” Defendants also represented that “we continue expanding our Quantum Fiber footprint and increasing our penetration” and “we're not capital-constrained. So as we continue to improve our penetration and performance, we'll continue to expand our footprint, and we believe we've got a long runway for growth in -- within Lumen in Quantum Fiber.”
However, Lumen was experiencing serious headwinds that were impeding its ability to grow its newly-targeted fiber markets. Defendants failed to disclose that: (i) various headwinds were impeding the Company’s ability to invest in and grow its Quantum Fiber brand; (ii) Quantum Fiber was not progressing as was represented to the investing public; (iii) Lumen’s management was reassessing its strategic priorities and had placed a hold on the plans to quickly scale up the Quantum Fiber brand; and (iv) as a result of Lumen’s decision to delay expansion of Quantum Fiber, the Company’s results and metrics were negatively impacted and the scaling up of Quantum Fiber would not occur until, at the earliest, the end of 2023.
Beginning on February 9, 2022, defendants began to admit that Lumen's expansion into small and medium business ("SMB") and residential fiber services was occurring slower than previously represented. On this news, Lumen’s stock price declined $1.99, from a close of $12.82 per share on February 9, 2022, to a close of $10.83 on February 10, 2022.
On November 2, 2022, Lumen’s Chief Executive Officer admitted, “let me be clear, we are not yet at the pace of build we expect or want” with respect to the Company’s development of its Quantum Fiber brand. On this news, Lumen’s stock price declined $1.25, from a close of $7.05 per share on November 2, 2022, to a close of $5.80 on November 3, 2022.
Finally, on February 7, 2023, defendants admitted they had pressed “more of a stop button than a pause button” on Lumen’s investment into the Quantum Fiber network and expansion into the SMB and residential markets while the Company re-evaluated its strategic priorities. On this news, Lumen’s stock price declined $1.04, from a close of $4.99 per share on February 7, 2023, to a close of $3.95 on February 8, 2023.
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