USMA Law Group is investigating potential securities fraud claims on behalf of purchasers of the common stock of Longfin Corp. (NASDAQ:LFIN). Longfin may have issued materially misleading information to investors regarding its business operations.
The investigation involves whether Longfin made false and/or misleading statements and/or failed to disclose that: (i) Longfin’s acquisition of Ziddu.com would result in a unprofitable business unit; (ii) the Company did not meet the inclusion requirements for the Russell indices; and (iii) the Company had no reasonable basis to claim its 2018 organic growth rate would exponentially outpace the prior year’s rate.
On March 26, 2018, stock commentary website Citron Research (“Citron”) published a tweet on Twitter questioning the veracity of Longfin’s operations. The same day, Russell issued a statement announcing Longfin would be removed from its global indices, only days after being added.
The following day, the Company’s CEO responded to Citron’s tweet. Among other things, the CEO stated Longfin’s annual report “would be filed in the next three days.” As of the morning of March 30, 2018, there was no indication that the Longfin had filed any financial report.
The price of Longfin’s stock declined from $59.28 per share on March 26, 2018, to close at $17.26 per share on March 29, 2018, a decline of 71%.
USMA Law Group is preparing a class action lawsuit to recover losses suffered by Longfin investors. If you suffered losses from purchases of Longfin shares, please contact USMA Law Group attorney David P. Abel at 202-274-0237 or via email at firstname.lastname@example.org. There is no obligation or cost.