NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/longfin/) today announced that a class action has been commenced on behalf of purchasers of Longfin Corp. (“Longfin”) (NASDAQ:LFIN) Class A common stock during the period between December 15, 2017 and April 2, 2018 (the “Class Period”). This action was filed in the Southern District of New York and is captioned Miller v. Longfin Corp., et al., No.18-cv-3121.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from April 3, 2018. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/longfin/. 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.
The complaint charges Longfin and its CEO with violations of the Securities Exchange Act of 1934. Longfin is a finance and technology company that provides trade and physical commodities solutions for finance businesses and trading platforms. In December 2017, Longfin went public through Regulation A+ (“Reg A+”) of the Jumpstart Our Business Startups Act of 2012. Under Reg A+ issuers can raise up to $50 million from investors through “public solicitation” without having to register the offering with the SEC or state regulators. Shortly after going public, Longfin announced that it was buying Ziddu.com (“Ziddu”) to enable global trade through the use of blockchain technology. The Company purchased Ziddu from an affiliate of its CEO and Chairman, Venkata S. Meenavalli, in exchange for 2.5 million Longfin Class A common shares. On this news, the price of Longfin Class A shares jumped more than 1,200% in two days. Effective March 16, 2018, Longfin was added to two widely tracked stock indices, the Russell 2000 Index and the Russell 3000 Index (the “Russell Indices”).
The complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements and failed to disclose that: (i) Longfin had misrepresented the location of its primary offices and the identity of key employees in its public statements; (ii) Longfin had numerous material weaknesses in its operations and internal controls over financial reporting; (iii) Longfin was ineligible for inclusion in the Russell Indices; and (iv) as a result of the foregoing, defendants’ statements were materially false and misleading at all relevant times. As a result of defendants’ false statements and/or omissions, the price of Longfin Class A shares was artificially inflated throughout the Class Period.
On March 26, 2018, Citron Research accused the Company of inaccuracies in its financial reporting and fraud. The same day, Russell issued a statement announcing that Longfin would be removed from its global indices after market close on March 28, 2018, approximately 12 days after being added. Then, on April 2, 2018, Longfin filed its annual report on Form 10-K for its 2017 fiscal year, which revealed that the Company was subject to an SEC investigation (which ultimately led to a court-imposed freeze on $27 million in illicit trading proceeds), suffered from a multitude of material weaknesses in its internal controls over financial reporting, and may not be able to continue as a going concern. The foregoing events caused the price of the Company’s stock to decline 86%, from $71.10 per share on March 23, 2018, to close at $9.89 per share on April 3, 2018.
Plaintiff seeks to recover damages on behalf of all purchasers of Longfin Class A common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.