CenturyLink, Inc. (NYSE: CTL)
The Complaint alleges as follows: On June 16, 2017, Bloomberg reported that a former CenturyLink employee claimed she was fired for blowing the whistle on the Company's high-pressure sales culture that allegedly left customers paying millions of dollars for accounts they didn't request. Bloomberg further reported that the complaint alleged that the Company allowed persons who had a personal incentive to add services or lines to customer accounts to falsely indicate on the CenturyLink system the approval by a customer of new lines or services. On this news, the Company's stock price fell $1.23 per share, or nearly 5%, to close at $25.72 per share on June 16, 2017, on unusually heavy trading volume.
On June 19, 2017, Bloomberg reported that a consumer complaint was filed against CenturyLink based on the whistle blower complaint alleging claims of fraud, unfair competition, and unjust enrichment. On this news, the Company's stock price fell $0.36 per share to close at $25.36 per share on June 19, 2017.
Furthermore, CenturyLink made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, CenturyLink failed to disclose: (1) that the Company allowed employees to add services or lines to customer accounts without customer approval; and (2) that, as a result of the foregoing, CenturyLinks statements the Company's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.