January 29, 2015 – CTPartners’ stock price dropped by 50 percent yesterday – its single biggest one-day dip – before settling at $4.35 per share, a 33 percent decline. The stock has been in a freefall for the past week on the back of multiple financial restatements and the suspension of a planned common stock offering. News of a pending EEOC investigation into discriminatory actions by senior managers at the global leadership and recruiting services company, and the possibility of a class action lawsuit involving securities law violations, has rattled Wall Street. A growing number of company insiders say privately they fear for the company’s future and for their jobs. In the last 60 days the company abruptly switched lead underwriters and shelved two stock offerings. “Lack of access to public capital could stunt the company’s growth plans,” said Scott A. Scanlon, managing director of industry research firm HSZ Media. “But more importantly, CTPartners’ decision to pull its guidance for 2015 sends the message that senior management does not have a clear path forward." CTPartners currently operates from more than 40 offices in 24 countries.
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