SAN DIEGO & WEST HENRIETTA, N.Y.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Vuzix Corporation (NasdaqCM: VUZI) issued in connection with the company's January 2018 secondary public offering ("SPO") and/or between November 9, 2017 and March 20, 2018, have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Vuzix designs, manufactures, markets, and sells wearable display devices in the United States and internationally.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/vuzix-corporation-vuzi/
Vuzix Accused of Using Illegal Stock Promotion Tactics
According to the complaint, prior to the SPO, Vuzix emphasized sequential growth and record revenue in its public filings. Vuzix also heavily touted its Vuzix Blade Smart Glasses ("The Blade"), noting that the device received four innovation awards at the Consumer Electronics Show in January 2018. In its SPO, Vuzix sold 3,000,000 shares at $10 per share, receiving proceeds of approximately $28.4 million. Not long after that, in March 2018, a report alleged that Vuzix illegally used stock promotion tactics to boost Vuzix's share price. The report called The Blade "little more than a low tech mock-up which serves as a prop for journalists to conduct sham reviews." On this news, Vuzix's stock fell more than 22% to close at $5.95 per share on March 21, 2018.
Vuzix Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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