NEW YORK, April 3, 2018 /PRNewswire/ -- Scott+Scott Attorneys at Law LLP ("Scott+Scott"), a national securities and consumer rights litigation firm, today announced that it has filed a class action lawsuit against Longfin Corp. ("Longfin" or the "Company") (NASDAQ: LFIN) and its Chief Executive Officer, Venkat Meenavalli (collectively, "Defendants").
The action, which was filed today in the U.S. District Court for the Southern District of New York, asserts claims under Sections 10(b) and 20 of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§78j(b) and 78t(a), and SEC Rule 10b-5 promulgated thereunder, 17 C.F.R. §240.10b-5, on behalf of investors who purchased or otherwise acquired Longfin common stock between December 15, 2017 and April 2, 2018, inclusive (the "Class Period").
Longfin is a finance and technology company that provides trade and physical commodities solutions for finance businesses and trading platforms. Longfin recently began using blockchain technology to enable global trade finance solutions.
The complaint alleges that Defendants violated provisions of the Exchange Act by issuing false and misleading statements to investors, including in filings with the U.S. Securities and Exchange Commission ("SEC"). Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Longfin had material weaknesses in its operations and internal controls that hindered the Company's profitability; (ii) Longfin did not meet the requirements for inclusion in the Russell 2000 and 3000 indices; and (iii) as a result of the foregoing, the Defendants' public statements were materially false and misleading at all relevant times.
On March 26, 2018, Citron Research ("Citron") posted a tweet on Twitter.com questioning the veracity of Longfin's operations. The same day, Russell issued a statement announcing Longfin would be removed from its indices after market close on March 28, 2018, only approximately 12 days after being added.
These events caused the price of the Company's stock to decline from $71.10 per share on March 23, 2018, to close at $14.31 per share on April 2, 2018, a decline of 79.9%, damaging investors.
On April 2, 2018, after the market closed, Longfin filed its 2017 annual report with the SEC. The annual report confirmed that Longfin had material weakness in its internal control over financial reporting, was not profitable, and was the subject of an SEC investigation.
If you wish to serve as lead plaintiff, you must move the Court no later 60 days from the date of this notice. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Rhiana Swartz of Scott+Scott at (844) 818-6980, or via email at firstname.lastname@example.org.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
SOURCE Scott+Scott Attorneys at Law LLP