NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Namaste Technologies Inc. (“Namaste” or the “Company”) (Other OTC:NXTTF) of the December 5, 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 Namaste stock or options between November 29, 2017 and October 4, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/NXTTF. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Namaste securities between November 29, 2017 and October 4, 2018 (the “Class Period”). The case, McCormick v. Namaste Technologies Inc., et al., No. 18-cv-08616 was filed on October 6, 2018 and has been assigned to Judge Fernando M. Olguin.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Namaste had sold its wholly-owned U.S. subsidiary to Namaste executives; (2) consequently, Namaste did not sell its U.S. subsidiary in an arm's length transaction; and (3) as a result, defendants' statements about the company's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Specifically, on October 4, 2018, Citron Research published an article entitled, “Namaste: Citron has exposed complete FRAUD that underpins the ‘Business’ of Namaste,” stating that the Company had entered into an “undisclosed related party” transaction.
On this news, the Company’s share price fell from $1.81 per share on October 4, 2018 to $1.62 per share on October 5, 2018—a $0.19 or 10.50% 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 Namaste’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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