NEW YORK, Nov. 27, 2013 /PRNewswire/ -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP announces the filing of a class action lawsuit against NQ Mobile, Inc. ("NQ Mobile" or the "Company")(NYSE: NQ) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 13 CV 7713, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of NQ Mobile between May 5, 2011 and October 24, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased NQ Mobile securities during the Class Period, you have until December 24, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
NQ Mobile is a company incorporated in the Cayman Islands, with headquarters in Beijing, China. The Company was founded in 2005, and purports to provide mobile internet services in the areas of privacy, mobile security, personalized cloud, productivity, and family protection. The Company offers a variety of products such as NQ Mobile Vault, NQ Mobile Call Blocker, and NQ Space.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose and/or misrepresented adverse facts, including that: (1) errors existed in NQ Mobile's revenue recognition practices; (2) NQ Mobile lacked adequate internal and financial controls; and (3) as a result of the foregoing, the NQ Mobile's statements were materially false and misleading at all relevant times.
On October 24, 2013, Muddy Waters Research issued a report (the "Report") that asserted that NQ Mobile has greatly overstated its true financial performance. The report alleges, among other matters, that at least 72% of NQ Mobile's purported China security revenue is fictitious. The Report continues to allege that NQ Mobile is its own largest customer and its actual market share in China is approximately 1.5%, rather than the 55% claimed by the Company. The Report questions the accuracy and veracity of NQ Mobile's cash balances, its reported international revenue and its financial statements filed with the State Administration for Industry & Commerce of the People's Republic of China and the U.S. Securities and Exchange Commission (the "SEC").
On this news, shares of NQ Mobile fell $10.79 per share, more than 47.16% on intraday trading on October 24, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
SOURCE Pomerantz Grossman Hufford Dahlstrom & Gross LLP