Shareholder rights law firm Robbins Arroyo LLP informs investors of a recently filed shareholder derivative lawsuit by purchasers of Longfin Corp. (NasdaqGM: LFIN) against the company’s officers and directors for alleged breaches of fiduciary duty. Longfin is an independent finance and technology company in the United States and internationally.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/longfin-corp-nov-2018/
Longfin Accused of Making False Statements in its SEC Filings
According to the complaint, Longfin inflated the trading price of Class A Shares by making materially false and misleading statements concerning: (i) the identities and qualifications of Longfin’s board members, officers, and key employees; (ii) material weaknesses in the company’s internal controls over financial reporting and operations; (iii) the company’s profitability; and (iv) key facts relating to the company’s acquisition of Ziddu.com from Meridian Enterprise Pte. Ltd. These misstatements caused Longfin’s Class A Stock to surge to $142.82 on December 18, 2017.
On March 26, 2018, Citron Research accused Longfin of inaccuracies in its financial reporting and fraud. That same day, Russell announced that Longfin would be removed from its global indices after market close on March 28, 2018. Then, on Friday, April 6, 2018, the SEC halted trading of the stock and obtained an emergency freeze of $27 million in trading profits involving the CEO and others to prevent the profits from being transferred out of the country. On May 24, 2018, the company’s Class A Stock was officially delisted from NASDAQ and began trading on the OTC, with an opening price of $5.05. The stock is now valued at under $2.00 per share.
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Longfin Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, 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.
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