Lumen Technologies, Inc. (NYSE: LUMN)
NEW YORK, NY – March 8, 2023 – Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed against Lumen Technologies, Inc. (NYSE: LUMN) (“Lumen” or the “Company”) in the United States District Court for the Western District of Louisiana on behalf of all persons and entities who purchased or otherwise acquired Lumen securities between September 14, 2020 and February 7, 2023, both dates inclusive (the “Class Period”).
All investors who purchased shares and incurred losses are advised to contact the firm immediately at firstname.lastname@example.org or (800) 575-0735 or (212) 545-4774.
If you have incurred losses, you may, no later than May 2, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
Lumen is an international facilities-based technology and communications company focused on providing its business and residential customers with an array of integrated products and services necessary to fully participate in a rapidly evolving digital world. Lumen purports to operate one of the world’s most interconnected networks that empowers its customers to rapidly adjust digital programs to meet immediate demands, create efficiencies, accelerate market access and reduce costs – allowing customers to rapidly evolve their information, communications, and technology programs.
Lumen’s service offerings include providing fiber infrastructure delivering high-bandwidth telecommunications services, primarily under the Quantum Fiber and Lumen brands. Quantum Fiber is Lumen’s brand for fiber-based services to residential and small business customers, and Lumen covers enterprise and wholesale markets.
On September 14, 2020, when the Company, formerly known as CenturyLink, announced that it would be rebranding itself as Lumen and its launch of “Quantum Fiber,” which would “use the Power of Lumen’s extensive fiber network and infrastructure.”
Thereafter, the Company touted Quantum Fiber’s launch and the Company’s growth plan focused on growing the consumer and small business markets. At the same time, management represented that the Company was “investing in the products and services that support the Lumen platform. We also continue to invest in expanding our fiber footprint and our digital customer and employee experience.”
Throughout the Class Period, the Company touted the success of the launch and growth plan, representing that management was “seeing really good pockets of growth” and that “driving up penetration represents a near-term addressable market opportunity.”
Management stated that the Company was “attracting new customers and growing our base. … We believe our fiber-to-the-premises technology is superior to any wireless or HFC-based offerings of our competitors now or in the future. … [T]he existing penetration rate validates our Quantum Fiber strategy and represents an opportunity as we continue to drive penetration higher.”
On February 9, 2022, the Company issued the first of a series of corrective disclosures. Management revealed the negative effects of stressed supply chains on Lumen’s operations. Management explained that the build plan for Quantum Fiber was “not going to be linear. It takes a while to ramp these capabilities, to do the engineering, to make sure that we’ve got the construction resources in place.” On this news, the Company’s stock price declined nearly $2.00 or more than 15.5% from a close of $12.82 per share to a close of $10.83 per share on February 10, 2022.
Later, on November 2, 2022, the Company revealed further delays in the Quantum Fiber build, with management stating that: “Digital transformation is not a destination, but it’s a journey. … we have much more to do … [and t]op line growth is our principal focus, but we cannot overstate the importance of these transformation efforts in delivering the experience our customers want and driving the efficiencies we need to grow the profitability of our business.” The Company CFO stated: “we slowed some of our transformation efforts” while undertaking a series of divestiture transactions. On this news, Lumen’s stock price declined $1.25 or 17.7% from a close of $7.05 per share on November 2, 2022 to a close of $5.80 per share on November 3, 2022.
On February 7, 2023, the Company’s new CEO, Kathleen Johnson, stated that “[L]et’s talk about our Quantum pacing. As we’ve said previously, we hit the pause button in the fourth quarter. Now to be frank, it was more of a stop button than a pause button, which impacted our Quantum metrics for the quarter.” The CFO acknowledged: “we have made significant changes in how we are approaching the Quantum Fiber opportunity. … our location and subscriber results were impacted by the pause we have in place through our evaluation. This change in strategy will continue to impact Quantum metrics until we get to scale with our new plan, which we expect to occur late this year.” On this news, Lumen’s stock price declined $1.04 or more than 20.8% from a close of $4.99 per share on February 7, 2023 to a close of $3.95 per share on February 8, 2023.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at email@example.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: firstname.lastname@example.org, email@example.com or firstname.lastname@example.org
Tel: (800) 575-0735 or (212) 545-4774
Certification and Authorization Pursuant to Federal Securities Laws
Date of signing: 03/28/2023