A lawsuit was filed on behalf of investors in NQ Mobile Inc (ADR) (NYSE:NQ) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 02/21/2018 -- An investor, who purchased shares of NQ Mobile Inc (ADR) (NYSE:NQ), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by NQ Mobile Inc.
Investors who purchased shares of NQ Mobile Inc (ADR) (NYSE:NQ) should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff claims that between March 30, 2017 and February 6, 2018, the defendants made materially false and/or misleading statements and/or failed to disclose that NQ Mobile failed to disclose related party transactions involving the Transaction between NQ Mobile and Tongfang, that due to the related parties involved in the Transaction, NQ Mobile agreed to consideration in the form of a note with a high likelihood of default, that Defendant Shi's interest in the Transaction was not fully disclosed, and that as a result, Defendants' statements about NQ Mobile's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On February 6, 2018, a report was published entitled "NQ Mobile: Undisclosed Transfer Of Subsidiaries To Chairman Introduces Significant Risks - Price Target $0." Citing a review of Chinese corporate records, the report's author concluded that "insiders control Tongfang Investment Fund, the firm that recently acquired NQ's mobile gaming and video businesses" and stated that "[o]ur research leads us to doubt every aspect of the transaction, including the cash payments and the $270 million note receivable, which together represents over 100% of NQ's market cap." Shares of NQ Mobile Inc (ADR) (NYSE:NQ) declined on February 6, 2018 to $1.68 per share.
Those who purchased shares of NQ Mobile Inc (ADR) (NYSE:NQ) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com