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A class-action law firm has begun an investigation into mobile virtual network operator Virgin Mobile USA Inc. to determine if it bears any civil liability under federal securities laws to its shareholders.
Kahn Gauthier Swick L.L.C. alleges that the MVNO may have withheld actual losses the company suffered in the third quarter as it raised more than $350 million in its initial public offering after the quarter’s end.
The law firm notes that Virgin Mobile USA’s shares fell 14.4% after the company announced its third quarter loss widened to $7.3 million earlier this month.
A spokeswoman for Virgin Mobile USA said the investigation is “completely without merit and Virgin Mobile is defending it vigorously.”
