San Diego, CA -- (SBWire) -- 05/16/2023 --An investor, who purchased NYSE: TDS shares, filed a lawsuit against Telephone and Data Systems, Inc. over alleged violations of Federal Securities Laws .
Investors who purchased shares of Telephone and Data Systems, Inc. (NYSE: TDS) have certain options and for certain investors are short and strict deadlines running. Deadline: July 3, 2023. NYSE: TDS investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Chicago, IL based Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. A subsidiary of Telephone and Data Systems, Inc. is United States Cellular Corporation ("UScellular"), which is a wireless telecommunications service provider.
On November 4, 2022, Telephone and Data Systems, Inc. released its third quarter 2022 financial results, reporting that UScellular's heavy promotional activity, including a free phone upgrade promotion, had failed to correct the Company's postpaid churn rate and had substantially eroded the Company's profitability.
Shares of Telephone and Data Systems, Inc. (NYSE: TDS) declined from over $18 per share in May 2022 to as low as $9.65 per share on November 29, 2022.
The plaintiff claims that between May 6, 2022 and November 3, 2022, the that Telephone and Data Systems, Inc. and its subsidiary, United States Cellular Corporation ("UScellular"), made materially false and/or misleading statements and/or failed to disclose that Defendants had no reason to believe UScellular's "free upgrade" promotional activity, which was tested and trialed during the second quarter of 2022, was effective at reducing the UScellular's postpaid churn rate as they represented to investors, as opposed to merely adding new postpaid subscribers, when its churn rate was actually increasing or remaining constant over most quarters between May 6, 2022 and November 3, 2022, that UScellular was not making progress with respect to its churn rate, as it represented to investors, that UScellular was not in fact balancing its promotional activity and its profitability, that due to extreme competition among postpaid carriers, UScellular did not have the flexibility to offset the costs from widespread, expensive promotions with price increases, and that as a result of the Companies' decision for UScellular to continue engaging in heavy promotions to address its postpaid subscriber churn rate despite any lack of positive impact on churn rate, UScellular's profitability substantially declined.
Those who purchased shares of Telephone and Data Systems, Inc. (NYSE: TDS) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
NYSE:TDS Investor Alert: Lawsuit Alleges Misleading Statements by Telephone and Data Systems, Inc.
A lawsuit was filed on behalf of investors in Telephone and Data Systems, Inc. (NYSE:TDS) shares over alleged securities laws violations.