A class action has been filed in the United States District Court for the Northern District of California against Lion and certain former officers of the Company, including its former CEO Manish Singh ("Singh"), on behalf of investors who purchased or otherwise acquired the publicly traded securities of Lion between November 14, 2013 and April 11, 2017, inclusive (the "Class"), alleging violations of the Securities Exchange Act of 1934.
On November 12, 2014, during aftermarket hours, Lion issued a press release announcing the resignation of defendant Singh. Following this news, shares of Lion fell $0.75 per share, or over 11%, to close at $5.95 per share on November 13, 2014.
On April 10, 2017, the Securities and Exchange Commission ("SEC") issued an Order finding that "from September 2013 to March 2014, Lion, through former Chief Executive Officer, Manish Singh, engaged in a scheme to mislead investors by commissioning over 10 internet publications and 20 widely distributed emails promoting Lion to potential investors that purported to be independent from the company when, in fact, they were paid promotions." Among other things, Lion was ordered to pay a civil money penalty in the amount of $100,000 to the SEC.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that (1) Lion, through former CEO Singh, engaged in a scheme to mislead investors, (2) defendant Singh engaged a notorious stock promotion firm to pay writers to publish articles about Lion on investment websites as well as to coordinate the distribution of articles to thousands of electronic mailboxes, (3) defendant Singh actively participated in promotional work for Lion and understood that the promotion firm was using writers who would not disclose that Lion was indirectly compensating them for their publications, and (4) as a result of the above, Lion's public statements were materially false and misleading at all relevant times.
The complaint also alleges that following the April 10, 2017 news of the SEC's Order and findings, shares of Lion fell $0.20 per share, or over 3%, to close at $6.35 per share on April 10, 2017.
If you are a member of the proposed Class, you may move the court no later than June 13, 2017 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
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SOURCE Kaplan Fox & Kilsheimer LLP