Shareholders of Lumen Technologies, Inc., formerly known as CenturyLink , Inc. (NYSE:LUMN), have been alerted to a class action lawsuit by The Gross Law Firm, as announced on Tuesday. The suit alleges that the company issued materially false and/or misleading statements and failed to disclose significant environmental and public health risks associated with its operations.
The class period for the lawsuit spans from March 11, 2019, to July 14, 2023. Shareholders who purchased shares of the company during this period are encouraged to contact the firm regarding possible appointment as lead plaintiff. The deadline for such appointment is set for November 14, 2023.
The complaint alleges that Lumen owned and possibly still owns thousands of miles of cables wrapped in lead, a known neurotoxin, within the U.S. This has reportedly harmed and poses the risk of further harming the environment, exposed company employees, and the general public, thereby posing a significant public health risk and environmental pollution risk.
The lawsuit further alleges that Lumen was aware of the damage and risks presented by these lead-covered cables but did not disclose them as a potential threat to everyday people and communities. The company also allegedly failed to provide adequate lead training to employees.
These actions have subjected the company to a heightened risk of governmental and regulatory oversight and enforcement action, as well as legal and reputational harm. As a result, the complaint asserts that the company's public statements were materially false and misleading at all relevant times.
The Gross Law Firm is a nationally recognized class action law firm committed to protecting investor rights against deceit, fraud, and illegal business practices. The firm seeks recovery on behalf of investors who incurred losses due to false or misleading statements or the omission of material information by a company leading to artificial inflation of the company's stock.
InvestingPro data reveals that Lumen Technologies, Inc. operates with a significant debt burden and is quickly burning through cash, which could potentially impact its ability to manage this legal situation. The company's market cap stands at $1,400 million, and it has seen a significant fall in its stock price over the past year, with a year-to-date price total return of -73.37%. This decline is reflective of the challenges the company has been facing, including the class action lawsuit and the alleged environmental and public health risks.
It is noteworthy that despite these challenges, Lumen has maintained dividend payments for 49 consecutive years, according to InvestingPro Tips. This indicates a commitment to return value to shareholders even amidst turbulence. However, with a P/E Ratio of -0.13 and a revenue growth of -18.05% as per InvestingPro data, investors may need to exercise caution.
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