On June 22, 2020, Saxena White secured a major victory with an important decision issued by the Eastern District of Virginia in Plymouth County Retirement System v. GTT Communications, Inc. et al., 1:19-cv-00982 (E.D. Va.). In his order, Judge Claude M. Hilton denied Defendants’ motion to dismiss the action in its entirety.
The Amended Complaint alleges that Defendants made a series of materially false and misleading statements regarding GTT’s integration of Interoute Communications, Ltd. (“Interoute”), a European-based telecommunications company that GTT acquired for $2.3 billion—the largest and most critical acquisition in GTT’s history by far. Specifically, Defendants stated numerous times throughout the Class Period that GTT’s integration of Interoute would be quick and seamless because Interoute followed the exact same strategy as GTT, such that it was “the European version of GTT” that fit together with it “hand in glove.” Once the Interoute integration was underway, Defendants repeatedly assured investors that that it was seamless, “on track,” and meeting every pre-announced milestone. In reality, and as Defendants would admit at the end of the Class Period, Interoute’s strategy was not the same as GTT’s—to the contrary, Interoute’s primary business sharply conflicted with GTT’s strategy, causing the integration to be a disaster from day one and never successfully completed.
Judge Hilton’s order denying Defendants’ motion to dismiss in its entirety stated: “The Court is of the opinion that the Complaint states a claim upon which recovery can be had.”
The case is now in the discovery phase.