NEW YORK, April 20, 2015 /PRNewswire/ -- Milberg LLP has filed a federal securities class action against AudioEye, Inc. ("AudioEye" or the "Company") (OTC: AEYE) alleging violations of the Securities Exchange Act of 1934. The action, filed in the United States District Court for the District of Arizona, is on behalf of purchasers of AudioEye securities between May 5, 2014 and April 1, 2015, inclusive (the "Class Period").
Defendants' are alleged to have violated the federal securities laws, specifically Section 10(b) and 20(a) of the Securities Exchange Act of 1934.
According to the complaint, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) AudioEye's financial statements contained errors concerning the classification of revenues and expenses; (2) the Company lacked adequate internal controls over its financial reporting; and (3) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On April 1, 2015, the truth was revealed when AudioEye announced that its previously issued financial statements for the quarters ended March 31, June 30 and September 30, 2014 will be restated due to errors. Furthermore, AudioEye stated that its preliminary earnings release issued by the Company on January 12, 2015 relating to the quarter and year ended December 31, 2014 should no longer be relied upon. The Company also announced that, Edward O'Donnell, resigned as the Company's Chief Financial Officer.
As a result of this announcement, the Company's stock fell 22% during intraday trading on April 1, 2015.
If you purchased AudioEye common stock during the Class Period you may, no later than June 15, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a class member that represents other class members in directing the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff, however, lead plaintiffs make important decisions that could affect the overall recovery for class members. You do not need to be a lead plaintiff to recover as an absent class member. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by Court-appointed counsel.
Milberg LLP has represented individual and institutional investors for over four decades and serves as lead counsel in Courts throughout the United States. Visit the Milberg website (www.milberg.com) for more information about the firm. If you wish to discuss this matter with us, please contact the following attorney:
Andrei Rado, Esq.
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: 800-320-5081
Email: [email protected]
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SOURCE Milberg LLP