Live Ventures Incorporated Class Action Lawsuit - LIVE
- Company Name
- Live Ventures Incorporated
- Stock Symbol
- Class Period
- December 28, 2016 to August 3, 2021
- Motion Deadline
- October 12, 2021
- District of Nevada
The Live Ventures class action lawsuit charges Live Ventures Incorporated (NASDAQ: LIVE) and certain of its top executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Live Ventures securities between December 28, 2016 and August 3, 2021, inclusive (“Class Period”). The Live Ventures class action lawsuit was commenced on August 13, 2021 in the District of Nevada and is captioned Sieggreen v. Live Ventures Incorporated, No. 21-cv-01517.
If you wish to serve as lead plaintiff of the Live Ventures class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Live Ventures class action lawsuit must be filed with the court no later than October 12, 2021.
CASE ALLEGATIONS: The Live Ventures class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Live Ventures’ earnings per share for fiscal year 2016 was actually only $6.33 per share; (ii) Live Ventures used an artificially low share count to boost the earnings per share by 40%; (iii) Live Ventures had overstated pre-tax income for fiscal year 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; (iv) Live Ventures’ acquisition of ApplianceSmart did not close during the first quarter of 2017; (v) using December 30, 2017 as the “acquisition date” and recognizing income therefrom did not conform to generally accepted accounting principles; (vi) by falsely stating that the acquisition closed during the quarter, Live Ventures recognized bargain purchase gain, which enabled Live Ventures to report positive net income in what would otherwise have been an unprofitable quarter; (vii) between fiscal year 2016 and fiscal year 2018, Live Ventures’ CEO, defendant Jon Isaac, received approximately 94% more in compensation than was disclosed to investors; and (viii) as a result, defendants’ positive statements about Live Ventures’ business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On August 3, 2021, the U.S. Securities and Exchange Commission (“SEC”) filed a complaint against Live Ventures, its CEO, and its CFO, defendant Virland A. Johnson, 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 complaint alleged that Live Ventures had recorded income from a backdated contract, which increased pre-tax income for fiscal year 2016 by 20%, and understated its outstanding share count, which overstated earnings per share by 40%. On this news, Live Ventures’ share price fell approximately 46%, damaging investors. Live Ventures’ stock price declined an additional 23% over the next four consecutive trading sessions.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Live Ventures securities during the Class Period to seek appointment as lead plaintiff in the Live Ventures class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Live Ventures class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Live Ventures class action lawsuit. An investor’s ability to share in any potential future recovery of the Live Ventures class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.