Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Live Ventures To Contact Him Directly To Discuss Their Options
NEW YORK - (NewMediaWire) - October 14, 2021 - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Live Ventures Incorporated (“Live Ventures” or the “Company”) (NASDAQ: LIVE) and reminds investors of the October 12, 2021 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $50,000 investing in Live Ventures stock or options between December 28, 2016 and August 3, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/LIVE.
There is no cost or obligation to you.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Live Ventures used an artificially low share count to boost its earnings per share for fiscal year 2016 by 40%. In fact, the Company’s earnings for 2016 were just $6.33 per share. The same year, the Company overstated pre-tax income including $915,500 in "other income." Further, the Company’s acquisition of ApplianceSmart did not close in Q1 2017 and using an acquisition date of December 30, 2017 did not follow GAAP. Between fiscal year 2016 and 2018, the Company’s CEO received compensation that was 94% higher than what was disclosed to investors. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Live Ventures, investors suffered damages.
On August 3, 2021, the SEC filed a complaint against Live Ventures, its Chief Executive Officer, and its Chief Financial Officer alleging "multiple financial, disclosure, and reporting violations related to inflated income and earnings per share, stock promotion and secret trading, and undisclosed executive compensation." Specifically, the SEC alleged that Live Ventures had recorded income from a backdated contract, which increased pre-tax income for fiscal 2016 by 20%, and understated its outstanding share count, which overstated earnings per share by 40%.
On 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 heavy trading volume. The stock price continued to decline $7.74, or 23%, over the next four consecutive trading sessions to close at $25.76 per share on August 10, 2021.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Live Ventures’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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