Shareholder rights law firm Robbins Arroyo LLP announces SITO Mobile, Ltd. (NasdaqCM: SITO) may face damages caused by a pending securities class action lawsuit. SITO provides advertisement delivery, measurement and attribution, and consumer insights in the United States and Canada.
Shareholder Class Action Alleging Defendants Made Materially False and Misleading Statements Survives Motion to Dismiss
Investors filed a class action complaint against SITO for alleged violations of the Securities Exchange Act of 1934. According to the complaint, SITO made misleading statements regarding the 2016 presidential election and the negative impact that it had on the company’s sales and revenues. Further, SITO officials misappropriated funds from the company through illicit expense reimbursement requests and credit card charges, while at the same time promoting the company’s success and seeking to raise funds from the uninformed public. When SITO revealed to investors that the company’s revenue had suffered due to restrained advertising spending, SITO’s market capitalization declined by approximately $40 million. On January 30, 2019, U.S. District Court Judge Esther Salas denied in part defendant’s motion to dismiss plaintiff’s complaint, paving the way for litigation to proceed.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/sito-mobile-feb-19/
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SITO Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, [email protected], or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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