Market Overview

Robbins Geller Rudman & Dowd LLP Announces a Securities Case Has Been Filed on Behalf of Purchasers of Gogo Inc. Securities


Geller Rudman & Dowd LLP
announces that a securities class
action case was filed on behalf of purchasers of Gogo Inc. (NASDAQ:GOGO)
securities between February 27, 2017 and May 7, 2018 (the "Class
Period"). This action was filed in the U.S. District Court for the
Northern District of Illinois, is captioned Pierrelouis v. Gogo, Inc.,
No. 1:18-cv-04473, and is assigned to Judge Alonso.

The Private Securities Litigation Reform Act of 1995 permits any
investor who purchased Gogo securities during the Class Period to seek
appointment as lead plaintiff. A lead plaintiff acts on behalf of all
other class members in directing the litigation. The lead plaintiff can
select a law firm of its choice. An investor's ability to share in any
potential future recovery is not dependent upon serving as lead
plaintiff. If you wish to serve as lead plaintiff or have questions
concerning your rights, please contact Brian
of Robbins Geller at 800/449-4900 or 619/231-1058, or via
e-mail at Lead
plaintiff motions must be filed with the court no later than 60 days
from June 27, 2018.

The complaint charges Gogo and certain of its officers and directors
with violations of the Securities Exchange Act of 1934 by issuing
materially false and misleading statements and/or failing to disclose
adverse facts about the Company's business, operations, and prospects,
including that Gogo's 2Ku system antenna had more reliability issues
than the public was led to believe, required costly installation, and
had remediation challenges or required replacement due to infiltration
by plane de-icing fluids, as well as manufacturing and software issues.
And, as a consequence of these issues, Gogo would not be able to meet
its 2018 guidance. As a result of defendants' false statements and/or
omissions, Gogo shares traded at artificially inflated prices during the
Class Period, with its stock price reaching a high of more than $14 per

On March 5, 2018, Gogo announced the sudden departure of its long-time
CEO, defendant Michael J. Small. Gogo replaced defendant Small with
defendant Oakleigh Thorne, a director of the Company since 2003. In a
thinly veiled rebuke of his predecessor's conduct, the Company's new CEO
began his earnings call remarks by proclaiming that his goal was "to
develop an open relationship with the financial community so that
investors can make informed decisions about investing in Gogo." The
Company disclosed, in relevant part, that it had "discovered that while
deicing was the biggest [2Ku] issue, there are also some manufacturing
issues and software issues at fault. We also discovered the deicing
fluid entered the antenna array down through far more pathways than we
originally thought." These issues resulted in increased operational
costs, maintenance expenses and capital expenses for new antenna
inventory, and lower service revenues. And despite Gogo's repeated,
albeit false, assurances throughout the Class Period that it was on
target to become free cash flow positive in 2019, Gogo disclosed that it
was "withdrawing its previously provided 2018 guidance for Adjusted
EBITDA, airborne Cash CAPEX, and airborne equipment inventory purchases
related to airline-directed installations, as well as Free Cash Flow
guidance." On this news, Gogo's stock price fell more than 13%.

Then, on May 7, 2018, after the market closed, Moody's downgraded Gogo,
moving it from "highly speculative" to "substantial risks," with a
negative outlook that could lead to even further rating cuts in the near
term. Moody's credit rating downgrades were due, in large part, to the
2Ku system's "performance degradation." On this news, Gogo's stock price
declined another 36% to close at $5.06 per share on May 8, 2018.

Robbins Geller is one of the world's leading law firms representing
investors in securities litigation. With 200 lawyers in 10 offices,
Robbins Geller has obtained many of the largest securities class action
recoveries in history. For five consecutive years, ISS Securities Class
Action Services has ranked the Firm in its annual SCAS Top 50 Report as
one of the top law firms in both the amount recovered for shareholders
and the total number of class action settlements. Robbins Geller
attorneys have helped shape the securities laws and recovered tens of
billions of dollars on behalf of aggrieved victims. Beyond securing
financial recoveries for defrauded investors, Robbins Geller also
specializes in implementing corporate governance reforms, helping to
improve the financial markets for investors worldwide. Please visit
for more information.

View Comments and Join the Discussion!