An investigation on behalf of investors of Tucows Inc. (USA) (NASDAQ:TCX) shares over potential securities laws violations by Tucows Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Tucows Inc. (USA) (NASDAQ:TCX) concerning whether a series of statements by Tucows Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Canada based Tucows Inc. is engaged in providing Internet services. Tucows Inc. reported that its annual Total Revenue rose from $172.94 million in 2015 to $189.82 million in 2016 and that its Net Income increased from $1.37 million in 2015 to $16.07 million in 2016.

Shares of Tucows Inc. (USA) (NASDAQ:TCX) grew from $18.95 per share in early 2016 to as high as $71.45 per share in late 2017.

On January 8, 2018, a report was issued stating that Tucows failed to disclose a lawsuit 'that should imminently result in the loss of 11% of the Company's revenue producing domains; nine insiders who sold $21 million of stock while hiding the fact its eNom subsidiary was being sued by its largest partner for breach of contract; and a laundry list of accounting shenanigans and financial irregularities.'
Shares of Tucows Inc. (USA) (NASDAQ:TCX) declined on Janaury 11, 2018 to $50.20 per share.