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GTT Hid Problems After $2.3 Billion Interoute Deal, Suit Says

Sept. 23, 2020, 7:47 PM

A GTT Communications Inc. investor sued the company for records in Delaware on Wednesday, looking to probe claims that insiders sold stock at inflated prices while concealing problems integrating Interoute Communications Ltd., a leading European cloud computing company it bought for $2.3 billion.

The lawsuit involves “legitimate concerns as to whether GTT and its fiduciaries made misleading statements about the company’s integration of its mission critical purchase” while dumping shares at prices pumped up by their scheme, the Chancery Court complaint says.

It accuses GTT’s senior leaders of offering falsely rosy projections in public statements and investor calls after the ...