NEW YORK (TheStreet) -- NII Holdings (NIHD) continued to plunge on Monday after news that a class action lawsuit has begun against the telecommunications company.
Levi & Korsinsky announced late last week the initiation of a lawsuit on behalf of investors who purchased NII Holdings common stock from the period of Feb. 25, 2010 to Feb. 27, 2014. The lawsuit claims that, during the period, NII Holdings deliberately made false and misleading statements and/or omitted information about the company's business and future prospects.
"Specifically, the complaint alleges that NII and NII Capital improperly concealed the company's failing efforts to modernize its telecommunications network and expand its subscriber base, and failed to disclose material adverse information in offering documents it filed with the SEC in connection with the issuance of NII Capital Notes in March and December of 2011," the statement reads.
NII Holdings was down 11.92% to $1.14 at 11:15 a.m. on Monday.
TheStreet Ratings team rates NII HOLDINGS INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NII HOLDINGS INC (NIHD) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally high debt management risk."