TAKE A LOOK AT WHICH REPORT YOUR PORTFOLIO'S BEEN MISSING...

Shareholders Foundation offers real-time reporting of class action exposure on a per transaction basis,
including the documents you will need for claim filing and settlement recovery.
Start Monitoring Your Investments

FairPoint Communications, Inc. Under Investor Investigation Over Possible Violations Of Securities Laws

  • If you purchased shares of FairPoint Communications, Inc. (NASDAQ: FRP), and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Investigation Overview

Company
FairPoint Communications, Inc.
Security
NASDAQ: FRP

Summary

Following a steep 40% stock drop an investigation on behalf of investors of FairPoint Communications, Inc. (NASDAQ:FRP) shares over possible violations of Federal Securities Laws was announced.

The investigation by a law firm focuses on whether FairPoint Communications, Inc. (Nasdaq:FRP) has violated federal securities laws by issuing false and misleading statements to its shareholders.

On January 24, 2011, FairPoint Communications, Inc emerged from Chapter 11 bankruptcy protection and FRP shares traded above $24 during the first months in 2011.

Then on March 22, 2011. FairPoint Communications, Inc. announced that in connection with the preparation of the consolidated financial statements of FairPoint Communications, Inc. for the year ended December 31, 2010, its management has discovered accounting errors that impact the accuracy of FairPoint Communications previously issued unaudited 2010 interim consolidated financial statements for the quarterly periods ended March 31, 2010, June 30, 2010 and September 30, 2010 , which were contained in the Companys Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2010, June 30, 2010 and September 30, 2010.

Shares of FairPoint Communications, Inc. (Public, NASDAQ:FRP) dropped from over $23 in the beginning of March to $16.88 on March 23, 2011.

Then on May 16, 2011 FairPoint Communications, Inc. announced its first quarter 2011 financial results. FairPoint Communications disclosed that its revenue was $254.8 million in the first quarter of 2011 as compared to $270.8 million a year earlier. Its said that operating expenses, excluding depreciation, amortization and reorganization, were $216.6 million in the first quarter of 2011 as compared to $231.1 million a year earlier.

FairPoint Communications said also that the full year 2011 revenue guidance of $1,060 to $1,090 million is unlikely to be achieved.


On May 17, 2011 shares of FairPoint plunged 40%, or over $6.00 per share from $16.54 on May 16 to $9.59 during Tuesday May 17.

Since the beginning of the year FRP shares dropped from as high as $24.78 to recently $9.59, or by over 60%.

Start Monitoring Your Investments