Ribbon Communications (RBBN) $4.5M Sonus Investor Settlement

Ribbon Communications (RBBN), ex-Ribbon, agreed to settle $4.5 million with investors in the revenue-forecast lawsuit.

The lawsuit alleges that $RBBN and its Accountables knew that:

• it would fall materially short of its $74 million revenue forecast,

• the unrealistic revenue and profitability forecasts remained aspirational and largely unreachable and

• a number of 2015 sales had been “pulled forward” to buoy sales numbers in Q4 2014, at management’s express direction, and

• the “backlog” of sales expected to be recognized in early 2015 was significantly lower than usual.

Persons who during the period between January 8, 2015 and March 24, 2015, both dates inclusive, purchased or otherwise acquired publicly traded common stock of Sonus Networks, Inc. (n/k/a Ribbon Communications, Inc.), and/or purchased or otherwise acquired publicly traded Sonus call options, and/or wrote publicly traded Sonus put options and suffered economic losses as a proximate result of the alleged wrongdoing, may be entitled to payout.