A lawsuit was filed on behalf of investors in Live Ventures Incorporated (NASDAQ:LIVE) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 10/14/2021 -- An investor, who purchased shares of Live Ventures Incorporated (NASDAQ: LIVE), filed a lawsuit in over alleged violations of Federal Securities Laws by Live Ventures Incorporated.
Investors who purchased shares of Live Ventures Incorporated (NASDAQ: LIVE) have certain options and for certain investors are short and strict deadlines running. Deadline: October 12, 2021. NASDAQ: LIVE investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Las Vegas, NV based Live Ventures Incorporated, together with its subsidiaries, engages in the flooring manufacturing, steel manufacturing, and retail businesses in the United States. On August 3, 2021, the U.S. Securities and Exchange Commission ("SEC") filed a complaint against Live Ventures, its Chief Executive Officer, and its Chief Financial Officer, alleging "its CEO, Jon Isaac, recorded income from a backdated contract to boost Live Ventures' pre-tax income for fiscal year 2016 by 20%. Live Ventures and Isaac also allegedly overstated earnings per share by 40% by improperly understating Live Ventures' outstanding share count. The complaint alleges that in addition to disclosing falsified financial results, Isaac hired a stock promoter to boost interest in Live Ventures." Shares of Live Ventures Incorporated (NASDAQ: LIVE) declined from $66.48 per share on July 28, 2021 to as low as $27.21 per share on August 9, 2021.
The plaintiff claims that between December 28, 2016 and August 3, 2021, the Defendants failed to disclose to investors: (1) that Live's earnings per share for FY 2016 was actually only $6.33 per share; (2) that the Company used an artificially low share count to boost the earnings per share by 40%; (3) that Live had overstated pre-tax income for fiscal 2016 by 20% by including $915,500 of "other income" related to certain amendments that were not negotiated until after the close of the fiscal year; (4) that Live's acquisition of ApplianceSmart did not close during first quarter 2017; (5) that using December 30, 2017 as the "acquisition date" and recognizing income therefrom did not conform to generally accepted accounting principles; (6) that, by falsely stating that the acquisition closed during the quarter, Live recognized bargain purchase gain, which enabled the Company to report positive net income in what would otherwise have been an unprofitable quarter; (7) that between fiscal 2016 and fiscal 2018, Live's CEO received approximately 94% more in compensation than was disclosed to investors; and (8) as a result, Defendants' statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
Those who purchased shares of Live Ventures Incorporated (NASDAQ: LIVE) have certain options and should contact the Shareholders Foundation.
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