BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased J2 Global, Inc. ("J2" or "the Company") (NASDAQ: JCOM) securities between October 5, 2015 and June 29, 2020, inclusive (the “Class Period”). J2 investors have until September 8, 2020 to file a lead plaintiff motion.
Investors suffering losses on their J2 investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On June 30, 2020 Hindenburg Research released a report claiming "J2’s opaque acquisition approach has opened the door to egregious insider self-enrichment, which we approximate totals $117 million to $172 million based on publicly available information." Hindenburg Research alleges, "We uncovered that J2 acquired a newly formed entity based out of its own VP of Corporate Development’s personal residence for an estimated $20 million. The entity had undefined ‘intellectual property’ and no employees or apparent assets. No conflict was disclosed." The research report also claimed that, "Despite J2’s proxy describing all but one of its board members as ‘independent,’ we found decades of intertwined financial interests between board members and executives, calling that independence into question."
On this news, the Company's share price fell $6.29, or over 9%, to close at $63.21 per share on June 30, 2020, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that J2 Global engaged in undisclosed related party transactions; (2) that J2 Global used misleading accounting to hide requisite impairments and underperformance in acquisitions; (3) that several so-called independent members of the Company’s board of directors and audit committee were not disinterested; and (4) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
If you purchased J2 securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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