San Diego, CA -- (SBWIRE) -- 04/21/2014 -- An investigation on behalf of investors, who purchased shares of Velti Plc (OTCMKTS:VELTF, formerly NASDAQ:VELT) shares in or shortly after the initial public offering (“IPO”) on January 27, 2011 concerning the pending lawsuit over alleged securities laws violations was announced
Investors who purchased shares of Velti Plc (NASDAQ:VELT, now OTCMKTS:VELTF) in or shortly after the IPO January 27, 2011 have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns, among other things, whether Velti Plc and certain underwriters of the IPO violated Federal Securities Laws.
Velti Plc currently faces a lawsuit filed in the U.S. District Court for the Northern District of California over alleged securities laws violations. The plaintiff alleges that the defendants made false and/or misleading statements and/or failed to disclose that Velti Plc was having difficulties collecting certain receivables, that certain of Velti Plc's receivables were uncollectible, that, as a result, Velti Plc's revenues and receivables were overstated between January 27, 2011 and August 20, 2013, that Velti Plc lacked adequate internal and financial controls, and that, as a result of the foregoing, Velti Plc's statements and reported financial results were materially false and misleading at all relevant times.
On August 20, 2013, Velti Plc announced its second quarter 2013 results. Among other things, Velti Plc said that it engaged Deloitte Financial Advisory Services to assist in evaluating the near-term and longer-term collectability of receivables on the books of its Greek and Cypriot subsidiaries and that as a result of this evaluation, Velti Plc is taking a charge in Q2 of approximately $111 million to its trade receivables and accrued contract receivables relating to its enterprise business, which primarily sold customized mobile marketing platforms to customers with operations principally within Greece and Cyprus. Velti Plc also said that it began a major restructuring.
Shares of Velti Plc declined from $1.03 per share on August 20, 2013, to $0.341 per share on August 21, 2013.
On April 17, 2014, OTCMKTS:VELTF shares closed at $0.0209 per share.
Those who purchased shares of Velti Plc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego