SAN DIEGO & BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Genius Brands International Inc. (NASDAQ: GNUS) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between March 17, 2020 and July 5, 2020. Genius is a multimedia company that licenses entertainment content for children.
If you have suffered a loss due to Genius Brands International Inc.'s misconduct, click here.
Genius Brands International Inc. (GNUS) Accused of Engaging in Pump-and-Dump Scheme
According to the complaint, Genius engaged in a marketing campaign to mislead shareholders and artificially inflate stock prices. Beginning on March 24, 2020, Genius made a series of direct offerings to "long-standing shareholders," selling millions of shares well below current market value. During this same time, Genius engaged in a pattern of deceptive hype, touting the launch of its new "free" educational platform, the "Kartoon Chanel!" app, which it unwarrantedly but favorably compared to Netflix, Disney, and Marvel. On June 4, 2020, Hindenburg Research questioned the valuation of Genius and highlighted inaccurate public statements made by the Company. Then, on June 16, 2020, Genius announced its unremarkable programming line-up for its app. Genius's stock precipitously declined on these disclosures. Finally, on July 6, 2020, Genius announced a new joint venture regarding intellectual property created by Stan Lee, underwhelming shareholders by again offering little substance to back Company claims. On this news, the share price dropped from $3.55 at close the previous day to just $2.66 at close on July 6, 2020, and continues to decline. Genius's kid-friendly app was disguised as a pump-and-dump scheme, enriching Company executives and long-term investors while harming unsuspecting shareholders.
If you purchased Genius Brands International Inc. (GNUS) securities between March 17, 2020 and July 5, 2020, you have until October 19, 2020, to ask the court to be appointed lead plaintiff for the class.
Robbins LLP is a nationally recognized leader in shareholder rights law. To be notified if a class action against Genius settles or to receive free alerts about companies engaged in wrongdoing, sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.