CenturyLink (NYSE: CTL) has become the object of a class action lawsuit filed on behalf of investors who purchased the telco's stock between Aug. 8, 2012, and Feb. 14, 2013.
Commenced in the U.S. District Court for the Southern District of New York by law firm Levi & Korsinsky, the complaint alleges that the telco made "false and misleading" statements about its dividend cut.
It is alleged that CenturyLink both misled investors on the strength of its free cash flow and that "as a result of the Company's misleading statements, CenturyLink stock traded at an artificially inflated price."
The telco said on Feb. 13 that it would cut its dividend from 72.5 cents to 54 cents per share and also announced the repurchase of up to $2 billion of its outstanding common stock. When news of these actions emerged, the company's shares fell from $41.69 on the day of the announcement to a close of $32.27 the following day.
Neither CenturyLink nor Levi & Korsinsky responded to a request for comment about the suit.
For more:
- see the release
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