Lumen Technologies, Inc. (NYSE: LUMN) Securities Fraud Class Action

Lumen investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than November 14, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.

A class action lawsuit has been filed on behalf of those who purchased or acquired Lumen Technologies, Inc. (“Lumen”) (NYSE: LUMN) securities between March 11, 2019 and July 14, 2023, both dates inclusive (the “Class Period”). 

Case Background:
On July 9, 2023, the Wall Street Journal ("WSJ") published an article reporting that more than 2,000 lead-covered cables previously used by Ma Bell and, subsequently, by various successor telecommunication companies, were degrading and leaching into soil and groundwater, posing a significant public health risk.  On this news, Lumen's stock price fell $0.13 per share, or 5.94%, to close at $2.06 per share on July 10, 2023.

Then on July 11, 2023, the WSJ published an article reporting that "[l]awmakers are demanding that telecom firms act to ensure that Americans are safe after [the WSJ's] investigation revealed that phone companies have left behind a network of cables covered in toxic lead, tainting water and soil in some locations". The article also cited legislators' and regulators' intentions to scrutinize lead cables owned by USTelecom members and to hold those members accountable.

On July 12, 2023, the WSJ published another article that detailed, inter alia, Lumen's ownership of lead-covered cables previously owned by Ma Bell, as well as evidence suggesting that Lumen's workers still faced exposure to lead in the modern era. On this news, Lumen's stock price fell $0.03 per share, or 1.45%, to close at $2.04 per share on July 12, 2023.

On July 14, 2023, Seeking Alpha reported that a J.P. Morgan analyst had concluded that "Lumen. . . likely . . . ha[s] 'exposure' to potential copper [cable] lead sheathing liability." On this news, Lumen's stock price fell $0.21 per share, or 10.19%, to close at $1.85 per share on July 14, 2023.

Also on July 14, 2023, during post-market hours, the WSJ published article citing various analyst and market concerns related to, inter alia, Lumen's exposure to enormous liabilities related to its lead-sheathed cables. In particular, the article noted that, after AT&T Inc., Verizon Communications Inc. and Lumen would have the most lead-covered cables to remove. On this news, Lumen's stock price fell $0.15 per share, or 8.11%, to close at $1.70 per share the next trading day on July 17, 2023.

Then, on August 1, 2023, on a quarterly earnings call, Lumen's executive management addressed the recent reporting on the company's exposure to liability related to lead-sheathed cables, disclosing that, by Lumen's own estimation, not more than 35,000 miles of its copper network could contain lead. In a response to an analyst's inquiry regarding whether Lumen "had any discussions around remediation" for the lead-sheathed cable issue, Lumen’s management noted that Lumen had spent considerable time determining how much lead was in the company's telecom system and could not estimate potential remediation costs.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Lumen owned and/or still owns thousands of miles of cables wrapped in lead, a known neurotoxin, within the United States; (2) the foregoing has harmed and posed the risk of further harming the environment, exposed company employees, and the general public, thereby posing a significant public health risk and environmental pollution risk; (3) Lumen was on notice about the damage and risks presented by these lead-covered cables but did not disclose them as a potential threat to everyday people and communities, as well as failed to provide adequate lead training to employees; (4) all the foregoing subjected the company to a heightened risk of governmental and regulatory oversight and enforcement action, as well as legal and reputational harm; and (5) as a result, the company's public statements were materially false and misleading at all relevant times.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.