SAN DIEGO & LOS ANGELES--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP informs investors that another purchaser of Verb Technology Company, Inc. (NASDAQ: VERB) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between January 3, 2018 and May 2, 2018. Verb operates as an applications services provider with cloud-based software products for businesses.
If you suffered a loss as a result of Verb's misconduct, click here.
Verb Technology Company, Inc. (VERB) Accused of Misrepresenting Oracle Agreement
According to the complaint, in January 2018, Verb touted a purported agreement with Oracle America, Inc. in its Form 8-K filing announcement. Verb stated that the development of the application and its marketing would be undertaken jointly by both it and Oracle, providing access to Oracle's network of approximately 2,000 sales reps. This news inflated the stock price by an astonishing 2000%, from $0.12 to $2.70 in April 2018. After the steep increase in its stock price, Verb disclosed the true terms of the Oracle agreement in its filing of a Form 8-K. The form revealed that previous statements regarding the agreement were materially false and misleading as Verb did not actually have a contract to jointly develop and market the application with Oracle, as was continuously touted by Verb. Rather, Oracle had only agreed to provide Verb with an application developer toolkit to interface with Oracle NetSuite. On this news, the stock price experienced a precipitous decline, closing in May 2018 at $1.08, a 60% decrease.
Verb Technology Company, Inc. (VERB) Shareholders Have Legal Options
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. Click Here to receive free alerts from Stock Watch when companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar outcome.