Shareholder Alert: Robbins LLP Announces J2 Global, Inc. (JCOM) Accused of Misleading Shareholders

SAN DIEGO & LOS ANGELES--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of J2 Global, Inc. (NASDAQ: JCOM) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between October 5, 2015 and June 29, 2020. J2 Global provides Internet services worldwide through its subsidiaries.

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J2 Global, Inc. (JCOM) Accused of Misleading Shareholders

According to the complaint, throughout the relevant period, J2 Global affirmed that it had disclosed all of its related-party transactions as required by the SEC and only detailed a $200 million investment in a related-party investment fund. The Company also repeatedly affirmed its thorough review of impairment on goodwill and reported no impairment charges. However, on June 30, 2020, Hidenburg Research published a report revealing that J2 Global: (i) failed to disclose questionable transactions with related parties; (ii); utilized misleading accounting to hide underperformance and impending impairments; and (iii) failed to disclose a lack of board independence. The report went on further to detail J2 Global and its executives' history of related party acquisitions and undisclosed self-dealing, including using "$20 million in shareholder capital to acquire a newly-formed entity set up by J2’s then VP of Corporate Development" and that "J2’s former VP of Corporate Development had formed 3 entities out of his house that were then acquired/operated by J2 … that cost/incurred losses totaling an estimated $30 million." Since this news, J2 Global's shares trade around $60 per share, representing a decline of 42% from its class period high of $103.47 per share.

J2 Global, Inc. (JCOM) Shareholders Have Options

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