SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Xoom Corporation - XOOM
NEW YORK, Jan. 6, 2015 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Xoom Corporation ("Xoom" or the "Company") (NASDAQ: XOOM). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 237.
The investigation concerns whether Xoom and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On October 28, 2014, the Company announced that Ryno Blignaut is resigning as Chief Financial Officer, effective as of December 1, 2014. Matt Hibbard, the Company's current Vice President of Finance, will assume the role of the Company's Chief Financial Officer, effective as of Mr. Blignaut's resignation.
On this news, shares of Xoom fell $2.45 per share, or more than 12.60%, to $17.00 per share in after-hours trading on October 28, 2014.
On January 5, 2015, the company announced in a Securities and Exchange Commission ("SEC") filing that "on December 30, 2014, Xoom Corporation (the "Company") determined that it had been the victim of a criminal fraud. The incident involved employee impersonation and fraudulent requests targeting the Company's finance department, resulting in the transfer of $30.8 million in corporate cash to overseas accounts. As a result, the Company expects to record a one-time charge of $30.8 million in its fourth quarter of 2014. The Company believes that no customer data was involved nor was any customer's money involved in this matter and the Company's systems were not impacted. While this matter will result in some additional near-term expenses, the Company does not expect this incident to otherwise have a material impact on its business.
On January 2, January 3, and January 4, 2015, the Company's audit committee met to discuss the matter and authorized an independent investigation, to be assisted by outside advisors. While the Company has internal controls in place and has implemented additional internal procedures, its audit committee and advisors are reviewing these controls and processes as part of the investigation. The Company has contacted federal law enforcement authorities who are actively pursuing a multi-agency criminal investigation."
On this news, shares of Xoom fell $0.25 per share, or more than 1.30%, to $16.67 per share in intraday trading on January 6, 2015.
The Pomerantz Firm, with offices in New York, Chicago, San Diego and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
SOURCE Pomerantz LLP
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