Bragar Eagel & Squire, PC Announces Class Action Lawsuit Has Been Filed Against Live Ventures Incorporated, Encourages Investors To Contact Firm
NEW YORK, August 17, 2021– (BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed against Live Ventures Incorporated (“Live Ventures “or the” Company “) (Nasdaq: LIVE) in the United States District Court for the District of Nevada on behalf of all persons and entities who purchased or otherwise acquired securities of Live Ventures between December 28 2016 and August 3, 2021, both dates inclusive (the “Class Period”). Investors have until October 12, 2021 to ask the court to be named lead plaintiffs in the lawsuit.
Click here to join the action.
On August 3, 2021, the United States Securities and Exchange Commission (“SEC”) filed a lawsuit against Live Ventures, its CEO and CFO alleging “multiple financial, disclosure and income reporting violations. and inflated profits. per share, share promotion and covert trading, and undisclosed executive compensation. Specifically, the SEC alleged that Live Ventures recorded income from a backdated contract, which increased pre-tax profit for fiscal 2016 by 20%, and underestimated the number of shares outstanding, which overestimated earnings per share by 40%.
Following this news, the Company’s share price fell $ 29.08, or 46%, to close at $ 33.50 per share on August 4, 2021, on unusually high trading volume.
The stock price continued to decline $ 7.74, or 23%, over the next four consecutive trading days to close at $ 25.76 per share on August 10, 2021.
The complaint filed in this class action alleges that throughout the class period, the defendants made materially false and / or misleading statements, and failed to disclose material adverse facts regarding the business, operations and prospects of the society. Specifically, the Defendants failed to disclose to investors: (1) that Live’s earnings per share for fiscal 2016 were in fact only $ 6.33 per share; (2) that the Company used an artificially low number of shares to increase earnings per share by 40%; (3) that Live overstated fiscal 2016 pre-tax earnings by 20% by including $ 915,500 of “other income” related to certain changes that were not negotiated until after fiscal year-end; (4) that the acquisition of ApplianceSmart by Live was not finalized during the first quarter of 2017; (5) that the use of December 30, 2017 as the “acquisition date” and the recognition of the income resulting from it did not comply with generally accepted accounting principles; (6) that by falsely stating that the acquisition was completed during the quarter, Live recognized a beneficial purchase gain, which allowed the Company to report a positive net profit over what would otherwise have been been an unprofitable quarter; (7) that between fiscal 2016 and fiscal 2018, the CEO of Live received approximately 94% more in compensation than was disclosed to investors; and (8) as a result, the Defendants’ statements regarding its business, operations and prospects were materially false and misleading and / or lacked reasonable basis at all material times.
If you have bought or acquired shares of Live Ventures and suffered a loss, are a long-term shareholder, have any information, want to know more about these claims or have questions regarding this announcement or your rights or interests in it of these questions, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at email@example.com, by phone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertising. Past results do not guarantee similar results.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20210816005759/en/
Bragar Eagel & Squire, PC
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.