Primus Telecommunications was slapped with a shareholder class-action suit over misrepresentation of projected revenue.
The news isnt all good for Primus Telecommunications Group, Inc. A law firm on Wednesday said it is filing a class action lawsuit in Virginia against the carrier on behalf of investors who purchased the companys stock between mid-November, 2003 and the end of July 2004. The complaint alleges misrepresentation of revenue projections.
According to law firm of Schatz & Nobel P.C., Primus misrepresented its prospects in several ways: over the pricing pressures on its international long-distance business; and its stated revenue projections for the rest of 2004. The suit also says that Primus was incapable of raising funds for necessary capital expenditures.
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