SAN DIEGO, May 29, 2013 /PRNewswire/ -- Yesterday, Waleed Ashari, a private citizen and private shareholder of Xumanii™ stocks (OTCQB: XUII), launched a Class Action lawsuit against George Sharp for illegal market manipulation based on false and misleading statements Sharp made about XUII. The law firm of LKP Global Law, LLP filed the Class Action Complaint on behalf of Mr. Ashari.
As alleged in the Class Action Complaint, filed yesterday in the San Diego County Superior Court, Case No. 37-2013-00050405-CU-SL-CTL, Sharp owns and/or otherwise controls the online website www.pumpsanddumps.com, which purports to maintain a so-called "Pumps and Dumps Watch List" on which Sharp claims to identify publicly traded companies engaging in the practice of "pumping and dumping" of penny stocks. The Class Action Complaint further alleges that Sharp maintains Twitter™ accounts under the screen names @PUMPSandDUMPS and @Goniffs to further disseminate information on companies listed on Sharp's so-called "Pumps and Dumps Watch List."
The Class Action Complaint also alleges that on or about May 1, 2013, after XUII stock began trading, Sharp listed XUII on his "Pumps and Dumps Watch List" without basis for doing so and "falsely claimed that XUII was engaged in an illegal pump and dump scheme through the dissemination of misinformation or misrepresentations." The Class Action Complaint further alleges that Sharp did so "in order to trigger the sale of XUII stock by its shareholders to drive down the share price" so that "he and/or related third-parties presently unknown to Plaintiff could, and did, profit from shorting XUII stock." The Class Action Complaint seeks Compensatory Damages, Pre- and Post-Judgment Interest, Attorney's Fees and Costs of Suit against Sharp.
In his most recent press release concerning the "potential" class action lawsuit against him, Sharp contends that "It appears that LKP Global Law is in the habit of providing aid and comfort to penny stock companies with dubious characteristics." Sharp references two prior lawsuits against him in which LKP Global Law represented Forex International Trading Corp and Eco-Trade Corporation. In the Forex International lawsuit, Sharp boasts that he was awarded attorney's fees following a successful Anti-SLAPP motion against Forex International. Sharp, however, fails to clarify that LKP Global Law no longer represented Forex International in the lawsuit at that time.
In the second lawsuit, LKP Global Law successfully defended its client, Eco-Trade, against a lawsuit filed by Sharp and obtained a monetary judgment of $11,000 against Sharp for breach of settlement agreement between the parties. Judgment was entered on July 28, 2011. Sharp's recent press release implies that LKP Global Law represented Eco-Trade when it was recently suspended from trading by FINRA. This, however, is an inaccurate statement by Sharp, according to Luan K. Phan, Managing Member of Litigation at LKP Global Law. According to Mr. Phan, LKP Global Law only represented Eco-Trade in the lawsuit against Sharp and did not represent Eco-Trade in any corporate matters.
SOURCE LKP Global Law, LLP