SAN DIEGO & BEIJING, Nov. 8, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of NQ Mobile, Inc. (NYSE: NQ) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between May 5, 2011 and October 24, 2013 (the "Class Period").
NQ Accused of Misleading Investors Regarding Its Financial Status
According to the complaint, defendants failed to disclose material adverse facts about the company's financial condition, business relationships, operations, and prospects. These allegations arose after Muddy Waters Research released a report on October 24, 2013, accusing the company of being a massive fraud. Specifically, the report claims that NQ overestimated its presences in China, claiming six million paying users, when in fact, Muddy Waters estimated NQ had less than 250,000 users. Moreover, the report maintains that NQ's antivirus program, Antivirus 7.0, was actually a spyware program and unsafe for subscribers to use. On this news, shares of NQ fell $10.79 per share, or 47%, to close at $12.09 on October 24, 2013.
The complaint further alleges that NQ'(s): (i) overstated its revenue and cash balances; (ii) lacked a reasonable basis regarding its revenue and financial guidance and; (iii) financial statement's violated the Generally Accepted Accounting Principles.
NQ Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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