NEW YORK, Dec. 17, 2013 /PRNewswire/ -- Harwood Feffer LLP (www.hfesq.com) is continuing its investigation of potential claims against the board of directors of Fab Universal Corp. ("FAB" or the "Company") (NYSE: FU), concerning whether the board has breached its fiduciary duties to shareholders.
On November 14, 2013, a report was issued on Alfredlittle.com alleging that FAB Universal had exaggerated its true financial performance alleging that the Company's "intelligent media kiosks" – which are meant to allow the download of copyright-protected movies – are in fact supplied with pirated American films and that only approximately 100 kiosks were deployed in Beijing, not the 3,954 disclosed in the Company's Proxy on June 1, 2012.
On November 18, 2013, GeoInvesting issued a report disclosing that the Company never disclosed the bond offering in its second or third quarter Form 10-Qs.
Between November 18, 2013 and December 7, 2013, at least three securities class actions were filed against the Company in the U.S. District Court for the Southern District of New York. Taken together, the complaints allege that defendants made materially false and misleading statements and/or failed to disclose that: (a) the Company overstated the number of intelligent media kiosks deployed in China; (b) the Company's kiosks were largely filled with pirated digital media; and (c) a Company subsidiary issued approximately $16.4 million in bonds to Chinese investors.
On December 10, 2013, the Company disclosed that its audit committee concluded that the Company's unaudited interim consolidated financial statements as of June 30, 2013 and September 30, 2013 and for the quarters there ended should no longer be relied upon.
Our investigation concerns whether the Company board of directors has breached its fiduciary duties to shareholders, grossly mismanaged the Company, and/or committed abuses of control in connection with the foregoing. If you own FU shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
Robert I. Harwood, Esq.
James G. Flynn, Esq.
Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.
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SOURCE Harwood Feffer LLP