NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky announces that a class action lawsuit has been commenced in the USDC for the Southern District of New York on behalf of investors who purchased FAB Universal Corporation (“FAB” or the “Company”) (NYSE MKT: FU) securities between June 15, 2012 and November 18, 2013. FAB trading was halted on November 22, 2013, with no indication of when the halt will be lifted. This halt will not effect the progress of the lawsuit.
For more information, click here: http://zlk.9nl.com/fab-universal-corp-fu/.
The complaint alleges that defendants made materially false and misleading statements and/or failed to disclose that: (a) the Company overstated the number of Intelligent Media Kiosks deployed in China; (b) the Company’s Kiosks were largely filled with pirated digital media; and (c) a Company subsidiary issued RMB 100 million (approximately $16.4 million) in bonds to Chinese investors.
On November 14, 2013, a report was issued on Alfredlittle.com alleging that FAB exaggerated its true financial performance. Among other allegations, the report alleges that the Company’s “Intelligent Media Kiosks”-- which are meant to allow the download of copyright-protected movies--are in fact supplied with pirated American films. The report also suggests that the Company’s director of franchisee sales acknowledged that the Company has approximately 100 kiosks in Beijing, rather than the 3,954 disclosed in the Company’s Proxy on June 1, 2012.
If you suffered a loss in FAB you have until January 17, 2014 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. To obtain additional information, contact Joseph E. Levi, Esq. either via email at email@example.com or by telephone at (212) 363-7500, toll-free: (877) 363-5972, or visit http://zlk.9nl.com/fab-universal-corp-fu/.
Levi & Korsinsky is a national firm with offices in New York, New Jersey, Connecticut, and Washington D.C. The firm has extensive expertise in prosecuting securities litigation involving financial fraud, representing investors throughout the nation in securities and shareholder lawsuits. Attorney advertising. Prior results do not guarantee similar outcomes.