The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Telos Corporation (“Telos” or the “Company”) (NASDAQ: TLS) common stock between November 19, 2020 and November 12, 2021, inclusive (the “Class Period”). Telos investors have until April 8, 2022 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On November 15, 2021, Telos announced that its TSA PreCheck contract would be delayed to 2022 and its multi-billion dollar contract with Centers for Medicare and Medicaid Services (“CMS”) was pushed back after full year 2022. As a result, the Company reduced its guidance to expect between $240 million and $245 million revenue, down from a prior range of $283 million to $295 million.
On this news, the Company’s stock price fell $6.84, or 28%, to close at $17.54 per share on November 15, 2021.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the TSA and CMS contracts, which constituted a majority of the Company's future revenues, were not on track to commence as represented at the end of 2021 and in 2022; (2) Defendants lacked a reasonable basis and sufficient visibility to provide and affirm the Company's 2021 guidance in the face of the uncertainty surrounding the TSA and CMS contracts; (3) COVID-19- and hacking scandal-related headwinds were throwing off the timing for performance of the TSA and CMS contracts and their associated revenues; (4) as a result, the guidance provided by Defendants was not in fact "conservative"; (5) as a result of the delays, Telos would be forced to dramatically reduce its revenue estimates; and (6) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
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If you purchased Telos common stock during the Class Period, you may move the Court no later than April 8, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Telos securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220211005130/en/
Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com
