NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Liberty Tax, Inc. (“Liberty” or the “Company”) (NASDAQ:TAX) of the February 13, 2018 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 Liberty stock or options between June 29, 2016 and December 11, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/TAX. 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 Eastern District of New York on behalf of all those who purchased Liberty securities between June 29, 2016 and December 11, 2017 (the “Class Period”). The case, Beland v. Liberty Tax, Inc. et al., No. 1:17-cv-07327 was filed on December 15, 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: (1) Liberty’s former Chief Executive Officer, John T. Hewitt, created an inappropriate tone at the top; (2) the inappropriate tone at the top led to ineffective entity level controls over the organization; and (3) as a result, the Company’s statements regarding its business, operations and prospects were materially false and misleading and/or lacked a reasonable basis.
Specifically, on November 7, 2017, Liberty Tax filed a Form 8-K with the Securities and Exchange Commission (“SEC”) during aftermarket hours announcing the sudden resignation of Kathleen E. Donovan as the Company’s Chief Financial Officer.
After the announcement, Liberty’s share price fell from $13.25 per share on November 7, 2017 to a closing price of $11.00 on November 8, 2017—a $2.25 or a 16.98% drop.
Then, on December 11, 2017, Liberty filed a Form 8-K with the SEC announcing the sudden resignation of KPMG LLP as its independent registered public accounting firm and the delay in the filing of its quarterly report on Form 10-Q for the quarter ended October 31, 2017.
Following the announcement, Liberty’s share price fell from $11.95 per share on December 8, 2017 to a closing price of $11.15 on December 11, 2017—a $0.80 or a 6.69% 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 Liberty’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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