NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Zoompass Holdings, Inc. (“Zoompass” or the “Company”) (Other OTC:ZPAS) of the July 31, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Zoompass stock or options between April 24, 2017 and May 24, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/ZPAS. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Zoompass securities between April 24, 2017 and May 24, 2017 (the “Class Period”). The case, Patel v. Zoompass Holdings, Inc. et al, No. 2:17-cv-03831 was filed on May 30, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) Zoompass unlawfully engaged in a scheme to promote the Company’s stock; (ii) discovery of the aforementioned conduct would subject the Company to heightened regulatory scrutiny and potential criminal sanctions; and (iii) as a result, Zoompass’ public statements were materially false and misleading.
Specifically, on May 9, 2017, the Company disclosed that it had been “made aware of and requested by the OTC Markets Group, Inc. to comment on recent trading and potential promotional activity.” On this news, over the course of three trading days, Zoompass’ share price fell from $3.64 on May 9, 2017 to a closing price of $1.97 on May 12, 2017—a $1.67 or a 45.89% drop.
Then, on May 25, 2017, Seeking Alpha published an article alleging that Zoompass had erroneously denied its involvement with a scheme designed to promote the Company’s stock. In addition, the article alleges that Zoompass had purposely kept hidden the fact that the Company’s CEO was involved in a pump-and-dump scheme. On this news, Zoompass’ share price fell from $2.95 on May 24, 2017 to a closing price of $2.25 on May 25, 2017—a $0.70 or a 23.73% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Zoompass’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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