Live Ventures Shareholder Alert
James (Josh) Wilson, Securities Litigation Partner, encourages investors who have suffered losses greater than $ 50,000 in live businesses to contact him directly to discuss their options
New York, New York – (Newsfile Corp. – October 12, 2021) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Live Ventures Incorporated (“Live Ventures” or the âCompanyâ) (NASDAQ: LIVE) and reminds investors of the October 12, 2021 deadline to apply as lead plaintiff in a federal securities class action lawsuit that has been filed against the Company.
If you suffered losses greater than $ 50,000 while investing in shares or options of Live Ventures between December 28, 2016 and August 3, 2021 and want to discuss your legal rights, call partner Faruqi & Faruqi Josh Wilson directly To 877-247-4292 Where 212-983-9330 (ext. 1310). You can also click here for more information: www.faruqilaw.com/LIVE.
There is no cost or obligation for you.
Faruqi & Faruqi is a leading national minority and women-owned securities law firm, with offices in New York, Delaware, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the company and its officers violated federal securities laws by making false and / or misleading statements and / or failing to disclose that: (1 ) Live Ventures used an artificially low stock count to increase its earnings per share for fiscal 2016 by 40%. In fact, the company’s profits for 2016 were only $ 6.33 per share. In the same year, the Company overstated its pre-tax earnings, including $ 915,500 in âother incomeâ. In addition, the acquisition of ApplianceSmart by the Company was not completed in the first quarter of 2017 and the use of an acquisition date of December 30, 2017 did not comply with GAAP. Between fiscal year 2016 and 2018, the CEO of the Company received compensation 94% higher than that disclosed to investors. Based on these facts, the Company’s public statements were false and misleading throughout the Class Period. When the market learned the truth about Live Ventures, investors suffered damage.
On August 3, 2021, the SEC filed a lawsuit against Live Ventures, its CEO and CFO, alleging “multiple financial, disclosure and reporting violations related to inflated income and earnings per share, promotion stock and covert transactions; and undisclosed executive compensation. Specifically, the SEC alleged that Live Ventures recorded income from a backdated contract, which increased pre-tax profit for fiscal 2016 by 20%, and underestimated the number of shares outstanding, which overestimated earnings per share by 40%.
Following this news, the Company’s share price fell $ 29.08, or 46%, to close at $ 33.50 per share on August 4, 2021, on unusually high trading volume. The stock price continued to decline $ 7.74, or 23%, over the next four consecutive trading days to close at $ 25.76 per share on August 10, 2021.
The principal plaintiff appointed by the court is the investor with the greatest financial interest in the remedy sought by the group, who is adequate and typical of the members of the group who are directing and supervising the litigation on behalf of the putative group. Any putative class member can propose to the court to serve as lead plaintiff through any lawyer they choose, or they can choose to do nothing and remain an absent member of the class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as a principal applicant.
Faruqi & Faruqi, LLP also encourages anyone with information regarding the conduct of Live Ventures to contact the company, including whistleblowers, former employees, shareholders and others.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/99440