LOS ANGELES–(BUSINESS WIRE)–$CCSI #CCSI—The Schall Law Firm, a national shareholder rights litigation firm, announced that it is investigating claims on behalf of investors of Consensus Cloud Solutions, Inc. (“Consensus Cloud Solutions” or “the Company”) (NASDAQ: CCSI) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Consensus Cloud Solutions disclosed on February 22, 2023, that “as a result of the unintentional errors noted [below], the audit committee (the ‘Audit Committee’) of the board of directors of the Company reached a determination to restate its unaudited financial statements for the three and nine month periods ended September 30, 2022.” The Company claims the “unintentional errors” were “primarily relating to (i) to a legacy accounting practice, inherited from the spin transaction in its SoHo business that grossed up revenue by $1.9 million and $5.3 million for the three and nine month periods ended September 30, 2022, respectively, with a corresponding offset to bad debt expense (‘SoHo Error’) and (ii) the timing of revenue recognition of $2.2 million and $2.5 million for the three and nine month periods ended September 30, 2022, respectively, which after review, the Company has concluded should be reclassified as deferred revenue (‘Deferred Revenue Error’).” Based on this news, shares of Consensus Cloud Solutions fell by 21% on the next day.
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The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
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Brian Schall, Esq.