NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Longfin Corp. (“Longfin” or the “Company”) (NASDAQ:LFIN) of the June 4, 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 Longfin stock or options between December 15, 2017 and April 2, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/LFIN. 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 Southern District of New York on behalf of all those who purchased Longfin common stock between December 15, 2017 and April 2, 2018 (the “Class Period”). The case, Reddy v. LongFin Corp. et al, No. 1:18-cv-02933 was filed on April 3, 2018 and has been assigned to Judge John George Koeltl.
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: (i) Longfin had material weaknesses in its operations and internal controls that impacted profitability; (ii) Longfin did not meet the requirements for inclusion in the global index operator FTSE Russell (“Russell”) indices; and (iii) as a result, the Company’s public statements were materially false and misleading.
Specifically, the lawsuit alleges that in early March 2018, Russell added the Company to two widely tracked Russell indices effective March 16, 2018. Then, on March 26, 2018, stock commentary website Citron Research questioned the veracity of Longfin’s operations. The same day, Russell issued a statement announcing that Longfin would be removed from its global indices after market close on March 28, 2018, only approximately 12 days after being added. Furthermore, on March 30, 2018, the end date by which Venkat S. Meenavalli, the Company’s Chief Executive Officer, stated Longfin’s annual report would be filed, no Longfin financial report on Form 10-K had been filed with the Securities and Exchange Commission. As a result of these events, Longfin’s share price fell from $71.10 per share on March 23, 2018 to a closing price of $ 14.31 on April 2, 2018—a $56.79 or a 79.87% 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 Longfin’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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