NEW YORK, March 13, 2023 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Consensus Cloud Solutions, Inc. ("CCSI" or the "Company") (NASDAQ: CCSI). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether CCSI and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On February 22, 2023, CCSI disclosed in a filing with the U.S. Securities and Exchange Commission that "[d]uring the preparation of its annual report on Form 10-K for the fiscal year ended December 31, 2022, the Company identified unintentional errors primarily relating to (i) to a legacy accounting practice, inherited from the spin transaction in its SoHo business that grossed up revenue by $1.9 million and $5.3 million for the three and nine month periods ended September 30, 2022, respectively, with a corresponding offset to bad debt expense and (ii) the timing of revenue recognition of $2.2 million and $2.5 million for the three and nine month periods ended September 30, 2022, respectively, which after review, the Company has concluded should be reclassified as deferred revenue." Accordingly, the Company's Audit Committee "determined that the unaudited financial statements for the three and nine month periods ended September 30, 2022 (the 'Prior Financial Statements') should no longer be relied upon and that a restatement of the Prior Financial Statements included in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2022 (the 'Q3 2022 10-Q') is required."
On this news, CCSI's stock price fell $12.58 per share, or 21.14%, to close at $46.92 per share on February 23, 2023.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, London, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
