Consensus Cloud Solutions
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
On February 22, 2023, Consensus Cloud Solution (the company) made an announcement stating that due to unintentional errors in their financial statements, the Audit Committee of the board of directors decided to restate their unaudited financials for the three and nine-month periods ended September 30, 2022. These errors were primarily related to two issues:
- SoHo Error: The company had an accounting practice inherited from a spin transaction in its SoHo business, which resulted in an incorrect grossing up of revenue by $1.9 million and $5.3 million for the three and nine-month periods ending on September 30, 2022, respectively. This was accompanied by an offset to bad debt expense.
- Deferred Revenue Error: The timing of revenue recognition was incorrect, leading to an overstatement of revenue by $2.2 million and $2.5 million for the three and nine-month periods ending on September 30, 2022, respectively. These amounts should have been classified as deferred revenue.
As a result of this announcement, investors reacted negatively, and Consensus Cloud Solution’s shares experienced a significant decline of over 21% on February 22, 2023. The restatement of financials and the acknowledgment of these errors raised concerns among investors, leading to the sharp drop in the company’s stock price.
