NEW YORK, April 20, 2018 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed Longfin Corp. ("Longfin" or the "Company") (NASDAQ: LFIN) and certain of its officers, on behalf of shareholders who purchased Longfin securities between December 15, 2017 and April 2, 2018, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: http://www.bgandg.com/lfin.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws.
Shortly after going public, Longfin announced that it was buying Ziddu.com ("Ziddu") to enable global trade through the use of blockchain technology. Longfin purchased Ziddu from an affiliate of its Chief Executive Officer and Chairman, Venkata S. Meenavalli, in exchange for 2.5 million Longfin Class A common shares. Following this news, the price of Longfin stock increased from $5.39 per share on December 14, 2017, to close at $72.38 per share on December 18, 2017, an increase of more than 1,200% in just two trading days.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose that: (1) Longfin had misrepresented material facts about its business and operations, including the extent of its capabilities at its New York offices and the identity and qualifications of key employees; (2) Longfin had material weaknesses in its operations and internal controls over financial reporting; (3) Longfin was ineligible for inclusion in the Russell Indices; (4) Longfin's lack of profitability had imperiled its ability to continue as a going concern; and (5) as a result of the foregoing, Longfin's financial statements and Defendants' statements about Longfin's business, operations, and prospects, were materially false and misleading at all relevant times.
On March 26, 2018, Citron Research posted a tweet on Twitter.com accusing the Company of inaccuracies in its financial reporting and fraud. The same day, FTSE Russell issued a statement announcing that Longfin would be removed from its global indices after market close on March 28, 2018, approximately 12 days after being added. Following this news, Longfin's share price fell $11.82, or 16.62%, to close at $59.28 on March 26, 2018. The stock continued to decline over the next trading sessions, closing on April 2, 2018, at $14.31 per share, for a total decline of $61.21 per share since the stock's close on March 23, 2018.
On March 27, 2018, CNBC published an article entitled "Longfin loses more than a third of its value after the controversial cryptocurrency stock is booted from the Russell 2000 index." In the article, Meenavalli stated that Longfin would be taking "'legal action'" against Citron for its negative comments. Following this news, Longfin's share price fell $17.42, or 50.23%, over two trading days, to close at $17.26 on March 29, 2018.
On April 2, 2018, after the market closed, Longfin filed its annual report on Form 10-K with the Securities and Exchange Commission for its 2017 fiscal year. The filing revealed that the Company was subject to an SEC investigation (which later led to a Court-imposed freeze on $27 million in illicit trading proceeds), suffered from a multitude of material weaknesses in its internal controls over financial reporting, and may not be able to continue as a going concern. Following this news, Longfin's share price fell $4.42, or 30.88%, to close at $9.89 on April 3, 2018.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/lfin or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Longfin you have until June 4, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.