Synacor Shuts Down Investor Suit Over 2016 AT&T Hosting Deal

Synacor Inc. is free of a shareholder suit over its web and mobile services hosting contract with AT&T Inc. after the Southern District of New York dismissed the suit Aug. 28.

The technology firm’s investors accused it of misleading them about revenue projections, AT&T’s ability to direct monetization of the deal, and internal control weaknesses. Some of the challenged statements weren’t misleading, and Synacor didn’t have the requisite mental state for liability on others.

Synacor allegedly told investors the three-year deal would help the firm’s annual revenue increase from around $100 million to $300 million by 2019. The deal ...