NEW YORK, May 19, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Akazoo S.A. ("Akazoo" or the "Company") (NASDAQ:SONG) of the June 23, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Akazoo stock or options between September 11, 2019 and April 20, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/SONG. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected]
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Akazoo securities between September 11, 2019 and April 20, 2020 (the "Class Period"). The case, Soe v. Akazoo S.A. et al., Docket 20-cv-01900 was filed on April 24, 2020, and has been assigned to Judge Brian M. Cogan.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Akazoo overstated its revenue, profits, and cash holdings; (2) Akazoo holds significantly lesser music distribution rights than it has stated and implied; (3) as opposed to Akazoo's continued statements, it does not operate in 25 countries; (4) Akazoo has a significantly smaller user base than it states; (5) Akazoo has closed its headquarters and other offices around the world; and (6) as a result, Defendants' public statements were materially false and/or misleading at all relevant times.
Specifically, on April 20, 2020, Quintessential Capital Management ("QCM") released an equity report (the "Report") detailing, among other things, how Akazoo misled investors and failed to disclose pertinent information, including: (a) Akazoo's overstated its users, subscribers, revenue and profit; (b) Akazoo overstated the size of the of the Company and its services; (c) Akazoo overstated where the Company's service is actually available; and (d) Akazoo is and has been closing offices and losing employees.
On this news, Akazoo stock fell $0.54 per share over the next two trading days, or over 20%, to close at $1.99 per share on April 21, 2020.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Akazoo's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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