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 Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Longfin Corp. (NASDAQ:LFIN) securities between December 13, 2017 and April 2, 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 March 26, 2018, Citron Research issued a report suggesting that the Company was “a pure stock scheme” and “filings and press releases are riddled with inaccuracies and fraud.” Then on March 27, 2018, Bloomberg reported that the Company was being removed from the Russell 2000 Index, less than two weeks after joining, as well as the Russell Global Index and the Russell Developed Index. Finally, on April 6, 2018, the SEC “obtained a court order freezing more than $27 million in trading proceeds from allegedly illegal distributions and sales of restricted shares of Longfin Corp. stock involving the company, its CEO, and three other affiliated individuals.” Approximately 30 minutes ahead of this SEC announcement, the Nasdaq halted trading of the Company’s stock under the code “T12” – a halt that requires additional information from the Company.
Following this news, Longfin shares have fallen as much as $61.21, or over 86%, since March 23, 2018, to close at $9.89 per share on April 3, 2018.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) Longfin included several false statements in its SEC filings in connection with its IPO, prompting an SEC investigation; (2) Longfin acquired Ziddu.com shortly after the IPO to capitalize on the popularity of blockchain companies, manipulating the Company’s stock price; (3) Longfin’s acquisition of Ziddu.com prompted an SEC investigation; and (4) Longfin knew that it was ineligible to be listed on the Russell 2000 and 3000 indices. As a result of the foregoing, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis throughout the Class Period.
If you purchased or otherwise acquired Longfin 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 email@example.com, 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 Longfin lawsuit, please go to www.bespc.com/lfin. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.