Gibbs Law Group Investigates Potential Securities Law Violations
Shares of Ribbon Communications Inc. plunged nearly 23% on February 17, 2022, after the company revealed the day prior, in its Q4 report for 2021, that it was taking a goodwill write-down of $116 million. According to the Motley Fool, the company hadn’t mentioned the impairment charge when announcing preliminary Q4 results in January 2022, so it may have come as a surprise to investors. Gibbs Law Group is looking into a potential Ribbon Communications (RBBN) Securities Class Action Lawsuit on behalf of shareholders who lost money in Ribbon Communications Inc. (NASDAQ: RBBN).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Thursday, February 17, 2022, shares of Texas-based Ribbon Communications dropped after its 2021 Q4 report revealed the company was writing off $116 million in goodwill after revising projections for its IP Optical business segment. In addition, Ribbon Communications also announced it would be taking a $20 million charge for a restructuring plan that would include $6 million in workforce reduction costs, as reported by the Dallas Business Journal.
According to the Motley Fool, Ribbon Communications had announced preliminary Q4 results one month ago in January, and the actual results posted on February 16 were a close match except for the $116 million goodwill charge. The Motley Fool notes that this charge is significant relative to the company’s market cap of $541 million.
Following this news, Ribbon Communication’s stock price steeply dropped close to 23% on February 17, 2022, causing significant harm to investors.
What Should Ribbon Communications Investors Do?
If you invested in Ribbon Communications, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Ribbon Communications has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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