Sonim Technologies, Inc. (SONM) Accused of Misleading Investors in IPO
According to the class action complaint against the company for alleged violations of the Securities Act of 1933, Sonim completed its IPO on May 13, 2019, offering 4.07 million shares of common stock at $11.00 per share and raising $37.5 million in proceeds. In its Registration Statements, Sonim acknowledged the importance of its XP5 and XP8 phones to its revenue growth. Then on September 10, 2019, Sonim issued a press release stating that it expected fiscal year 2019 net revenues to be flat or slightly below 2018 net revenues, including a GAAP net loss of up to $15 million and an adjusted EBITDA loss of up to $5 million. Sonim cited its U.S. wireless carrier’s lowered purchase forecasts for Sonim’s new phone products as well as “launch delays due to software issues” for these new products as reasons for its financial outlook revisions. On this news, Sonim’s share price fell $3.30, or over 46%, to close at $3.76. The stock currently trades at around $2.50, a staggering 77% decline from its IPO price.
