Synacor Misled Investors on New $100M AT&T Portal, Suit Says

Technology development firm Synacor Inc. faces a shareholder derivative suit for allegedly misleading investors about the value of its contract to host AT&T Inc.‘s web services.

Synacor executives told investors the three-year deal, announced in 2016, would earn the firm $100 million per year, according to a Dec. 4 complaint. But the executives had “no basis” for this number and knew it was misleading, the complaint said.

AT&T’s old portal provider—the former Yahoo! Inc., now known as Altaba—earned about $100 million per year on its deal with the telecommunications firm, the complaint said. Synacor executives told investors their ...