🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

Lumen Technologies faces class action lawsuit over environmental and health risks

EditorHari Govind
Published 03/10/2023, 09:26 pm
© Reuters.
LUMN
-

Shareholders of Lumen Technologies, Inc., formerly known as CenturyLink , Inc. (NYSE:LUMN), have been alerted to a class action lawsuit by The Gross Law Firm, as announced on Tuesday. The suit alleges that the company issued materially false and/or misleading statements and failed to disclose significant environmental and public health risks associated with its operations.

The class period for the lawsuit spans from March 11, 2019, to July 14, 2023. Shareholders who purchased shares of the company during this period are encouraged to contact the firm regarding possible appointment as lead plaintiff. The deadline for such appointment is set for November 14, 2023.

The complaint alleges that Lumen owned and possibly still owns thousands of miles of cables wrapped in lead, a known neurotoxin, within the U.S. This has reportedly harmed and poses 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.

The lawsuit further alleges that Lumen was aware of the damage and risks presented by these lead-covered cables but did not disclose them as a potential threat to everyday people and communities. The company also allegedly failed to provide adequate lead training to employees.

These actions have subjected the company to a heightened risk of governmental and regulatory oversight and enforcement action, as well as legal and reputational harm. As a result, the complaint asserts that the company's public statements were materially false and misleading at all relevant times.

The Gross Law Firm is a nationally recognized class action law firm committed to protecting investor rights against deceit, fraud, and illegal business practices. The firm seeks recovery on behalf of investors who incurred losses due to false or misleading statements or the omission of material information by a company leading to artificial inflation of the company's stock.

InvestingPro data reveals that Lumen Technologies, Inc. operates with a significant debt burden and is quickly burning through cash, which could potentially impact its ability to manage this legal situation. The company's market cap stands at $1,400 million, and it has seen a significant fall in its stock price over the past year, with a year-to-date price total return of -73.37%. This decline is reflective of the challenges the company has been facing, including the class action lawsuit and the alleged environmental and public health risks.

It is noteworthy that despite these challenges, Lumen has maintained dividend payments for 49 consecutive years, according to InvestingPro Tips. This indicates a commitment to return value to shareholders even amidst turbulence. However, with a P/E Ratio of -0.13 and a revenue growth of -18.05% as per InvestingPro data, investors may need to exercise caution.

For those interested in exploring more about investing strategies and comprehensive real-time metrics, InvestingPro offers a wealth of tips and data. For instance, you can find 14 additional tips related to Lumen Technologies on their platform. To access these and more, visit InvestingPro's subscription page.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.