NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the District of Central California on behalf of all persons or entities who purchased or otherwise acquired IZEA, Inc. (NASDAQ: IZEA) securities between May 25, 2015 and April 3, 2018 (the “Class Period”). Investors have until June 4, 2018 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On Monday, February 26 IZEA announced that in connection with the preparation of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, the company’s Audit Committee of the Board of Directors (the “Audit Committee”) determined that there was an error in accounting for revenue and cost of sales related to the self-service Content Workflow portion of the company’s revenue, and that as a result of additional review procedures necessitated by the accounting adjustments, the company needs additional time to file its Annual Report on Form 10-K for the year ended December 31, 2017 and plans to file a request for an extension on Form 12b-25 with the Securities and Exchange Commission.
Following this news, shares of IZEA fell $0.66 per share, or over 18%, on April 2, 2018, to close at $3.00 per share. The stock price then continued to fall the following trading day, and dropped another $0.58 per share, or over 19%, to close at $2.42 per share on April 3, 2018.
The complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) IZEA was misreporting revenue from the Company’s Content Workflow services as gross amounts billed to marketers instead of on a net transaction basis; (2) the amount IZEA previously reported as gross profit on Content Workflow should be the amount reported as revenue; (3) IZEA lacked adequate internal controls; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
If you purchased or otherwise acquired IZEA securities and suffered a loss, continue to hold shares purchased prior to the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the IZEA, Inc. lawsuit, please go to http://www.bespc.com/izeainc. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.