SHAREHOLDER ALERT: Robbins LLP Announces that Live Ventures Inc. (LIVE) is Being Sued for Misleading Shareholders

SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired Live Ventures Inc. (NASDAQ: LIVE) securities between December 28, 2016 and August 3, 2021, for violations of the Securities Exchange Act of 1934. Live Ventures is a holding company. Until 2015, Live Ventures focused on providing online marketing solutions for small and medium business. Thereafter, the Company shifted to acquiring purportedly profitable businesses in various industries that have demonstrated a strong history of earnings power.

If you suffered a loss due to Live Ventures Inc.'s misconduct, click here.

Live Ventures Inc. (LIVE) Made Misleading Statements Regarding its Business, Operations, and Prospects

According to the complaint, during the class period, defendants made materially false and misleading statements and failed to disclose a variety of facts to investors. Specifically, Live Ventures failed to disclose that its earnings per share for FY 2016 was only $6.33 per share; that the Company used an artificially low share count to boost the earnings per share by 40%; and that Live Ventures had overstated pre-tax income for fiscal 2016 by 20% by including $915,500 of "other income" related to certain amendments that were not negotiated until after the close of the fiscal year. Additionally, Live Venture made numerous false statements regarding its acquisition of ApplianceSmart and the manner in which it recognized income therefrom did not conform to generally accepted accounting principles. Finally, the Company failed to disclose that its CEO received more compensation than was disclosed to investors.

On August 3, 2021, the U.S. Securities and Exchange Commission (SEC) filed a complaint against Live Ventures, its Chief Executive Officer, and its Chief Financial Officer alleging "multiple financial, disclosure, and reporting violations related to inflated income and earnings per share, stock promotion and secret trading, and undisclosed executive compensation." Specifically, the SEC alleged that Live Ventures had recorded income from a backdated contract, which increased pre-tax income for fiscal 2016 by 20%, and understated its outstanding share count, which overstated earnings per share by 40%. On this news, the Company's share price fell $29.08, or 46%, to close at $33.50 per share on August 4, 2021. The stock continued to decline, and fell another 23% over the next four consecutive trading sessions to close at $25.76 per share on August 10, 2021.

If you purchased shares of Live Ventures Inc. (LIVE) between December 28, 2016 and August 3, 2021, you have until September 24, 2021, to ask the court to appoint you lead plaintiff for the class.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:

Lauren Levi
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Shareholder Information Form

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