Kirby McInerney LLP Announces Filing of Securities Class Action on Behalf of Live Ventures Incorporated (LIVE) Investors
NEW YORK, August 17, 2021– (BUSINESS WIRE) – Law firm Kirby McInerney LLP announces that a class action lawsuit has been filed in the United States District Court for the District of Nevada on behalf of those who acquired Live Ventures Incorporated (“Live Ventures” or the “Company”) (NASDAQ: LIVE) from December 28, 2016 to August 3, 2021 inclusive (the “Class Period”). Investors have until October 12, 2021 to ask the court to be named lead plaintiffs in the lawsuit.
Live Ventures, along with its subsidiaries, is engaged in the flooring manufacturing, steel fabrication and retail operations in the United States.
On August 3, 2021, the United States Securities and Exchange Commission (“SEC”) filed a lawsuit against Live Ventures, its CEO (“CEO”) and CFO alleging “multiple financial, disclosure and reporting violations related to inflated earnings and earnings per share, share promotion and covert deals, 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 by $ 29.08 per share, or approximately 46.47%, from $ 62.58 per share to $ 33.50 per share on August 4, 2021. .
The lawsuit alleges throughout the Class Period that the Defendants made materially false and / or misleading statements, as well as that they 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 Ventures’ 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 Ventures overstated the pre-tax profit for fiscal 2016 by 20% by including $ 915,500 of “other income” related to certain changes that were not negotiated until after the end of the fiscal year ; (4) that the acquisition of ApplianceSmart by Live Ventures 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 Ventures recognized a windfall purchase gain, which allowed the Company to report a positive net profit in what would have otherwise been an unprofitable quarter; (7) that between fiscal 2016 and fiscal 2018, the CEO of Live Ventures 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 purchased or acquired securities of Live Ventures, have any information or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org , or by completing this contact form, to discuss your rights or interests in these matters at no cost to you.
Kirby McInerney LLP is a New York law firm specializing in securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the company is available on the Kirby McInerney LLP website: http://www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.