A lawsuit was filed on behalf of investors in Liquid Holdings Group Inc (NASDAQ:LIQD) shares over alleged securities laws violations and NASDAQ:LIQD investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/13/2015 -- A shareholder in NASDAQ:LIQD shares filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Liquid Holdings Group Inc in connection with certain allegedly false and misleading statements made between July 26, 2013 and December 23, 2014.
Investors who purchased shares of Liquid Holdings Group Inc (NASDAQ:LIQD) have certain options and for certain investors are short and strict deadlines running. Deadline: November 20, 2015. NASDAQ:LIQD investors should contact the Shareholders Foundation at mail@shareholdersfoundation or call 858-779-1554.
The plaintiff alleges on behalf of purchasers of the securities of Liquid Holdings Group Inc (NASDAQ:LIQD) (Nasdaq: LIQD) pursuant and/or traceable to Liquid Holdings Group Inc's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with Liquid Holdings Group Inc's initial public offering on or about July 25, 2013 (the "IPO" or the "Offering), and/or on the open market between July 26, 2013 and December 23, 2014,, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between July 26, 2013 and December 23, 2014, Defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that Liquid Holdings Group Inc was overstating its ability to generate customers, that Liquid Holdings Group Inc's business model was unsustainable, that the financial condition of Liquid Holdings Group Inc's main and largest customer (an investment entity known as QuantX Management, LLP ("QuantX")) was deteriorating, that, as a result, the Company's financial results and operating metrics were overstated, that, as such, the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"),that Liquid Holdings Group Inc lacked adequate internal controls, and that, as a result of the foregoing, Liquid Holdings Group Inc's financial statements and Defendants' statements about Liquid Holding's business, operations, and prospects, were materially false and misleading at all relevant times.
On September 17, 2015, Liquid Holdings Group Inc (NASDAQ:LIQD) announced that its previously issued unaudited condensed consolidated financial statements as of September 30, 2014 and for the three and nine months ended September 30, 2014 should no longer be relied upon and should be restated due to certain accounting errors. Liquid Holdings Group Inc stated that the accounting errors involve the premature recognition of revenue from QuantX Management, LLP and from other customers of the Company that had received allocations of capital from QuantX during the quarter ended September 30, 2014, before collectability was reasonably assured.
Shares of Liquid Holdings Group Inc (NASDAQ:LIQD) declined from $8.59 per share in November 2013 to as low as $0.06 per share on September 25, 2015.
Those who purchased NASDAQ:LIQD shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego