NEW YORK, Sept. 03, 2021 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the District of Nevada on behalf of those who acquired Live Ventures Incorporated (“Live Ventures” or the “Company”) (NASDAQ: LIVE) securities from December 28, 2016 through August 3, 2021, inclusive (the “Class Period”). Investors have until October 12, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Live Ventures, together with its subsidiaries, engages in the flooring manufacturing, steel manufacturing, and retail businesses in the United States.
On August 3, 2021, the U.S. Securities and Exchange Commission (“SEC”) filed a complaint against Live Ventures, its Chief Executive Officer (“CEO”), 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 declined by $29.08 per share, or approximately 46.47%, from $62.58 per share to close at $33.50 per share on August 4, 2021.
The lawsuit alleges 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 Live Ventures’ earnings per share for FY 2016 was actually only $6.33 per share; (2) that the Company used an artificially low share count to boost the earnings per share by 40%; (3) 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; (4) that Live Ventures’ acquisition of ApplianceSmart did not close during first quarter 2017; (5) that using December 30, 2017 as the “acquisition date” and recognizing income therefrom did not conform to generally accepted accounting principles; (6) that, by falsely stating that the acquisition closed during the quarter, Live Ventures recognized bargain purchase gain, which enabled the Company to report positive net income in what would otherwise have been an unprofitable quarter; (7) that between fiscal 2016 and fiscal 2018, Live Ventures’ CEO received approximately 94% more in compensation than was disclosed to investors; and (8) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
If you purchased or otherwise acquired Live Ventures securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-371-6600
https://www.kmllp.com
investigations@kmllp.com
