SAN DIEGO--(BUSINESS WIRE)--The Class: Shareholder rights law firm Robbins LLP informs investors that a shareholder filed a class action on behalf of purchasers of Telos Corporation (NASDAQ: TLS) common stock between November 19, 2020 and November 12, 2021, for violations of the Securities Exchange Act of 1934. Telos develops and implements cyber, cloud, and enterprise security technology products. One of its offerings is "ID Trust 360," an FBI-certified, enterprise-class digital identity risk platform for extending software-as-a-service and custom digital identity services.
If you suffered a loss due to Telos Corporation's misconduct, click here.
What is this Case About: Telos Corporation (TLS) Misrepresented the Timing of Contracts Expected to Generate Significant Revenue
According to the complaint, during the class period, Telos touted the positive financial impact two newly entered contracts – one with the TSA and one with the Centers for Medicare and Medicaid Services ("CMS") – would have on the Company. Specifically, the Company projected the contracts would generate "in excess of $135 million in revenue in 2021 and 2022." By August 16, 2021, Telos announced the contracts were experiencing headwinds due to recent cyber-attacks and adjusted its revenue projection for the contracts downward. Despite further delays, Telos continued to affirm its revenue guidance for 2021.
However, throughout the class period, Telos failed to disclose that: (1) the TSA and CMS contracts, which constituted a majority of the Company's future revenues, were not on track to commence as represented at the end of 2021 and in 2022; (2) Defendants lacked a reasonable basis and sufficient visibility to provide and affirm the Company's 2021 guidance in the face of the uncertainty surrounding the TSA and CMS contracts; (3) COVID-19 and hacking scandal-related headwinds were throwing off the timing for performance of the contracts and their associated revenues; and (4) as a result of the delays, Telos would be forced to dramatically reduce its revenue estimates.
On November 15, 2021, Telos revealed that the contracts would be delayed with only the TSA contract commencing in 2022, while the CMS contract was pushed back after full year 2022. In response, Telos' stock fell $6.48 per share, or more than 28%, to close at $17.54 per share on November 15, 2021, representing a $328 million decline in market capitalization.
Next Steps: If you purchased shares of Telos Corporation (TLS) between November 19, 2020 and November 12, 2021, you have until April 8, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Telos Corporation settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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