Cloud and messaging company Synchronoss received a green light to resume trading its stock on Nasdaq, after being suspended from the exchange in May due to fraud allegations.
Synchronoss said in a statement it will resume trading on 1 October, after receiving notice this week (26 September) from the Nasdaq Listing Qualifications Staff approving its listing, which was suspended on 14 May.
The company was rocked after allegations emerged in late 2017 that founder and former CEO Stephen Waldis, along with former CFO Karen Rosenberger, implemented a fraudulent scheme to conceal the company’s struggling finances. This included prematurely recognising contractual revenue, among a number of other accounting discrepancies, which ultimately led to its Nasdaq suspension.
Synchronoss first drew fire from the exchange for rescheduling its Q1 2017 earnings call, filing and release, which fell foul of the exchange’s rules. The company also said it needed to restate two years-worth of accounts because they were no longer reliable, but missed a deadline to do so in May 2018.
The company finally restated its accounts in July , which it said at the time represented a major step towards lifting the suspension.
Glenn Lurie, president and CEO of Synchronoss (pictured) said meeting Nasdaq listing requirements and SEC financial reporting obligations had been “a top priority” since he joined the company in November 2017: the lifting of the Nasdaq suspension “achieves that objective”, he stated.
“Our employees have worked tirelessly to meet these requirements, which places Synchronoss in a position to apply all of our attention to driving growth and shareholder value,” Lurie added.Subscribe to our daily newsletter Back