||Lumen Technologies, Inc. f/k/a CenturyLink, Inc.
||United States District Court for the Western District of Louisiana
||The Hon. Terry Alvin Doughty
||September 14, 2020 and February 7, 2023
Lumen investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than May 2, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Lumen Technologies, Inc. f/k/a CenturyLink, Inc. (“Lumen”) (NYSE: LUMN, CTL) common stock between September 14, 2020 and February 7, 2023, both dates inclusive (the “Class Period”).
At the beginning of the Class Period, Lumen announced it would redefine its business by renaming itself from CenturyLink, Inc. to Lumen and would be refining its marketing approach, by cutting off market segments and operations that did not align with Lumen’s strategic objectives and adding market segments that were aligned with its vision. Specifically, Lumen stated that it would leverage its existing 400,000 route miles of fiber optic cable, which had previously serviced enterprise and wholesale markets, to expand its fiber services to small and medium business (“SMB”) and residential or consumer markets. Lumen represented to investors that expanding its fiber services into the SMB and residential markets, branded as Quantum Fiber, was a natural fit for Lumen that represented a strong opportunity for growth.
Throughout the Class Period, Defendants represented to investors and the public that Lumen was, among other things, “investing heavily in our consumer fiber business” and was “expanding our Quantum Fiber footprint and increasing our penetration.”
The truth began to emerge on February 9, 2022, during Lumen’s fourth quarter 2021 conference call, when Lumen claimed that stressed supply chains had a negative effect on the company’s operations, including operations related to Quantum Fiber. Following this news, Lumen’s stock price fell $1.99, or 15.5%, to close at $10.83 per share on February 10, 2022.
Then, on November 2, 2022, during Lumen’s third quarter 2022 conference call, Lumen disclosed Quantum Fiber build delays, expressing that it was “not yet where [the company] want[s] it to be” and that it has “much more to do.” Following this news, Lumen’s stock price fell $1.25, or 17.7%, to close at $5.80 per share on November 3, 2022.
Finally, on February 7, 2023, on a conference call to discuss Lumen’s full year 2022 financial results, Lumen admitted that it had pressed “more of a stop button than a pause button” regarding the Quantum Fiber network while it reevaluated its strategic priorities. Following this news, Lumen’s stock price fell $1.04, or 20.8%, to close at $3.95 per share on February 8, 2023.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) various headwinds were impeding Lumen’s ability to invest in and grow its Quantum Fiber brand; (2) Lumen's Quantum Fiber business was not progressing as was represented to the investing public; (3) Lumen's management was reassessing its strategic priorities and had placed a hold on the plans to quickly scale up the Quantum Fiber brand; and (4) as a result of Lumen's decision to delay expansion of Quantum Fiber, the company's results and metrics were negatively impacted and the scaling up of Quantum Fiber would not occur until, at the earliest, the end of 2023.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.