SAN DIEGO & WASHINGTON--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Liquidity Services, Inc. (NASDAQGS: LQDT) breached their fiduciary duties by issuing materially misleading business information to the investing public. Liquidity Services operates online auction marketplaces for buyers and sellers of surplus, salvage, and scrap assets in the United States.
View this press release on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/liquidity-services-inc
Class Action Against Liquidity Services Survives Defendant's Motion to Dismiss
On March 31, 2016, the U.S. District Court for the District of Columbia granted in part and denied in part the defendants' motion to dismiss a securities fraud class action against Liquidity Services and certain of its officers and directors. The lawsuit alleges that from February 1, 2012 through May 7, 2014, Liquidity Services officials made false statements regarding the purported strength of the company's retail and commercial capital assets divisions, causing the stock price to be artificially inflated. Further, the lawsuit alleges that Liquidity Services' Chief Executive Officer sold $68.2 million of company stock at artificially inflated prices. Taking the facts pled collectively and accepting them as true, the Court held that the plaintiff sufficiently pled that there was a "'strong inference of scienter,' which is 'a mental state embracing intent to deceive, manipulate, or defraud,'" with respect to certain public statements.
Liquidity Services Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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