Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Telos Corporation (TLS)

NEW YORK, Feb. 09, 2022 (GLOBE NEWSWIRE) --  Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Telos Corporation ("Telos" or the "Company") TLS in the United States District Court for the Eastern District of Virginia on behalf of investors who purchased Telos' common stock between November 19, 2020 and November 12, 2021, both dates inclusive (the "Class Period").

The Complaint alleges that Defendants failed to disclose that: (1) the TSA and CMS contracts, which constituted a majority of the Company's future revenues, were not on track to commence as represented at the end of 2021 and in 2022; (2) Defendants lacked a reasonable basis and sufficient visibility to provide and affirm the Company's 2021 guidance in the face of the uncertainty surrounding the TSA and CMS contracts; (3) COVID and hacking scandal-related headwinds were throwing off the timing for performance of the TSA and CMS contracts and their associated revenues; (4) as a result, the guidance provided by Defendants was not in fact "conservative"; (5) as a result of the delays, Telos would be forced to dramatically reduce its revenue estimates; and (6) as a result of the foregoing, Defendants' statements about Telos' business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.

The truth emerged during Telos' third quarter 2021 earnings call on November 15, 2021, causing Telos' stock price to fall and investors to suffer substantial losses. On that call, Telos announced that it was not expecting the TSA PreCheck contract "to deliver meaningful sales this year." The Company also disclosed that it was not including revenue from the CMS contract in the Company's 2022 outlook. In response to these revelations, Telos' stock price fell $6.84 per share, or more than 28 percent.

Investors who purchased or otherwise acquired shares of Telos should contact the Firm prior to the April 8, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.