Sequans Communications S.A. Securities Lawsuit Investigation

Securities Lawsuit Investigation | Company: Sequans Communications S.A. | For: Misleading Sales Forecasts, Failure to Disclose Information, Artificially Inflated Stock Prices

Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Sequans Communications (“Sequans”) and certain of its officers and directors violated the Securities Act of 1933 and the Securities Exchange Act 1934. Sequans is a designer, developer and supplier of 4G semiconductor solutions for wireless broadband applications.

For over 30 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm focuses on cases involving stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired American Depositary Shares (“ADSs”) pursuant and/or traceable to the Company’s Initial Public Offering on or about April 15, 2011 (the “IPO”), as well as purchasers of Sequans ADSs between April 15, 2011 and July 27, 2011, and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP, by no later than November 8, 2011 to discuss your rights, including as to recovery of your losses or to obtain additional information.

Misleading Sales Forecasts

A class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Sequans. Sequans repeatedly assure investors on numerous occasions that the Company was well positioned to meet financial goals for 2011 due to the growing demand of 4G devices.

Failure to Disclose Information

The Complaint alleges that at the time of the IPO, Defendants’ Registration Statement failed to disclose material information to the investing public that revenues from the Company’s WiMAX products were declining. Sequans allegedly failed to disclose that the Company was not in position to generate any meaningful revenues from sales of 4G LTE products until late 2012. The suit further alleges that Sequans’s largest customer, HTC, and the industry in general, was focusing more on 4G LTE offerings as opposed to WiMAX offerings, including WiMAX products offered by the Company. Sequans also failed to disclose that the Company would not experience sales growth during 2011 and in fact would experience sales declines during that period and sales from its largest customer, HTC has and will continue to decline. As a result, Defendants lacked a reasonable basis for their positive statements about the Company, operations and prospects.

Artificially Inflated Stock Prices

Sequans’ misleading sales projections in combination with its failure to disclose negative business trends, lead to artificially inflated prices during the Class Period.

On July 28, 2011, Sequans announced financial results for the second quarter of 2011 well below expected returns. As a result of this news, shares of Sequans traded in the range of $5.50 – $6. per share.

Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of Sequans’ fraudulent practices. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or CALL TOLL FREE (888) 252-0048.