Just the Facts
In a securities class action litigation that started in 2017, CenturyLink investors alleged that CenturyLink and certain officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by the SEC. Specifically, Plaintiffs alleged that Defendants made a series of materially false and misleading statements about CenturyLink’s financial condition and billing practices by misquoting prices and overbilling customers in a practice known as “cramming” in an effort to meet the financial projections that Defendants were representing to its investors. Through a series of corrective disclosures, CenturyLink’s improper billing practices were revealed to the investing public which caused CenturyLink’s common stock and senior notes to decline.
On September 14, 2020, the Court certified a Class of CenturyLink investors consisting of “all persons and entities that purchased or otherwise acquired publicly traded CenturyLink common stock or 7.60% Senior Notes due September 15, 2039 (“7.60% Notes”) during the period from March 1, 2013, through July 12, 2017, inclusive (the Class Period”), and who were damaged thereby.”
On March 18, 2021, the Court preliminarily approved a settlement of $55 million. The claim filing deadline to participate in the settlement is August 13, 2021, and exclusions or objections must be received no later than June 29, 2021. A fairness hearing is scheduled for July 20, 2021.