NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, reminds investors of pending class action lawsuits against Longfin Corp. (“Longfin” or the “Company”) (NASDAQ: LFIN) and certain of its officers, related to alleged violations of federal securities laws. If you purchased Longfin securities between December 15, 2017 and April 2, 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for additional information. The lead plaintiff deadline is June 4, 2018.
Longfin is a finance and technology company that provides trade and physical commodities solutions for finance businesses and trading platforms. Longfin recently began using blockchain technology to enable global trade finance solutions.
The lawsuit alleges that Defendants issued false and misleading statements to investors, including failing to disclose that: (i) Longfin had material weaknesses in its operations and internal controls that hindered the Company’s profitability; and (ii) Longfin did not meet the requirements for inclusion in the Russell 2000 and 3000 indices.
On March 26, 2018, Citron Research (“Citron”) posted a tweet on Twitter questioning the veracity of Longfin’s operations. The same day, Russell issued a statement announcing Longfin would be removed from its indices after market close on March 28, 2018, approximately 12 days after being added.
These events caused the price of the Company’s stock to decline from $71.10 per share on March 23, 2018, to close at $14.31 per share on April 2, 2018, a decline of 79.9%.
On April 2, 2018, after the market closed, Longfin filed its 2017 annual report (Form 10-K) with the Securities and Exchange Commission (“SEC”). The annual report confirmed that Longfin had material weakness in its internal control over financial reporting, was not profitable, and was the subject of an SEC investigation (which later led to a Court-imposed freeze on $27 million in illicit trading proceeds).
On this news, Longfin’s share price fell another $4.42, or 30.88%, to close at $9.89 on April 3, 2018.
What You Can Do
If you wish to discuss these lawsuits or have any questions concerning this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980, or via email at firstname.lastname@example.org. Investors have until June 4, 2018, to move for lead plaintiff.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.