NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ:XELA) of the May 22, 2020 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 Exela stock or options between March 16, 2018 and March 16, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/XELA. 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 Northern District of Texas on behalf of all those who purchased Exela securities between March 16, 2018 and March 16, 2020 (the “Class Period”). The case, Bo Shen v. Exela Technologies, Inc., No. 20-cv-00691, was filed on March 23, 2020.
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: (1) Exela’s previously issued financial statements for the twelve months ended December, 31, 2017 and December 31, 2018, and the quarterly statements for the three and nine months ended September 30, 2019 contained numerous accounting errors, could not be relied upon, and required restatement; and (2) as a result, Defendants’ statements about Exela’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Specifically, on March 16, 2020, the Company issued a press release announcing that it would be postponing its earnings and conference call due to a delayed filing of the Company’s Form 10-K for fiscal year 2019.
On this news, Exela’s stock fell from a closing price of $0.1854 per share on March 16, 2020 to $0.1700 per share on March 17, 2020—a $0.0154 or 8.31% drop.
The next day, Exela issued a press release containing an update regarding their delayed filing. The Company disclosed that, in addition to not being able to timely file their Form 10-K, the Company revealed more information about the need to restate its financial statements for fiscal years 2017 and 2018, and its interim 2019 statements.
On this news, Exela’s stock fell from a closing price of $0.1700 per share on March 17, 2020 to $0.1450 per share on March 18, 2020—a $0.025 or 14.71% 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 Exela’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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