Verb Technology Company, Inc.
- Company Name
- Verb Technology Company, Inc.
- Stock Symbol
- Class Period
- January 3, 2018 to May 2, 2018
- Motion Deadline
- September 8, 2019
- Central District of California
The complaint charges Verb and its Chairman and Chief Executive Officer with violations of the Securities Exchange Act of 1934. Verb operates as an applications services provider with cloud-based software products for businesses. Verb utilizes interactive videos as part of its customer relationship management application. Verb has formerly operated under the names of nFusz, Inc., bBooth, Inc., bBooth (USA), Inc., and Cutaia Media Group, LLC.
On January 3, 2018, the Company announced a purported agreement with Oracle America, Inc. in a Form 8-K filed with the SEC, which omitted the text of the agreement itself. The agreement received widespread attention. Throughout the Class Period, the Company continued to tout this relationship. After this announcement, the price of Verb stock increased from approximately $0.12 per share on January 3, 2018 to $2.70 per share on April 19, 2018, an increase of over 2000%.
Following the rapid rise of the Company’s stock price, on April 23, 2018, the truth about the Company’s relationship with Oracle began to emerge when the Company revealed the actual terms of the Oracle agreement in another Form 8-K filing. The terms of the agreement revealed that defendants’ prior representations as to the scope of the Company’s relationship with Oracle were materially misleading. For example, there was no joint agreement for Oracle to use its substantial salesforce to market Verb’s product as the Company and its CEO had previously touted. Moreover, the actual text of the agreement revealed the true nature of the relationship between Oracle and Verb: the Company had simply been provided with an application developer toolkit for its program interface with Oracle NetSuite.
As the market began to digest that Verb and its CEO had greatly overstated the terms of the agreement and the Company’s relationship with Oracle, the price of Verb stock began a precipitous decline, closing on April 30, 2018 at $1.54 per share, a decrease of 43% from the high a little over a week earlier. By market close on May 2, 2018, the price of the Company’s stock had fallen even further, to $1.08 per share, a decrease of 60% from the stock’s high price of $2.70 per share on April 19, 2018.