The lawsuit alleges that defendants issued materially false and misleading financial statements for the fiscal year ending December 31, 2018 and quarters ending March 31, 2019 and June 30, 2019. Among other things, Pareteum improperly and inaccurately recognized revenue for certain customer transactions, thereby artificially inflating the revenue results that Pareteum reported to investors. Investors learned the truth about Pareteum’s improper accounting on October 21, 2019 when the company disclosed that certain revenues recognized during 2018 and 2019 should not have been recorded and that, as a result, Pareteum would need to restate its consolidated financial statements for the full year ended December 31, 2018, and interim periods ended March 31, 2019 and June 30, 2019, as the previously filed financial statements were false. In response to this news, the price of Pareteum stock dropped 59.5% in a single trading day.