Verus International Inc. Class Action Lawsuit
- Company Name
- Verus International Inc.
- Stock Symbol
- Class Period
- June 17, 2019 to October 8, 2020
- Motion Deadline
- June 22, 2021
- District of Maryland
The Verus International Inc. class action lawsuit charges Verus International and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent all persons and entities that purchased or otherwise acquired Verus International securities between June 17, 2019 through October 8, 2020, inclusive (the “Class Period”). The Verus International class action lawsuit was commenced on April 23, 2021 in the District of Maryland and is captioned Benjamin v. Bhatnagar, No. 21-cv-01001.
Verus International purports to be a multi-line consumer packaged goods company, which develops branded product lines in the U.S. and globally. Verus International was purportedly the fourth fastest growing consumer products food company at the end of 2019, which included its acquisitions of Big League Foods and a controlling interest in NutriBrands. On April 3, 2020, Verus International announced the acquisition of a controlling 51% interest in ZC Top Apparel Manufacturing, Inc., (“ZTAM”), a purported Philippines-based manufacturer of reusable N95 fabric masks and biohazard suits.
The Verus International class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Verus International lacked the requisite resources, infrastructure, and/or expertise to exploit its Big League Foods brand and its Major League Baseball (“MLB”) license; (ii) Verus International’s issues in production ramp-up were not fully resolved to enable Verus International to fulfill customer orders; (iii) as a result, Verus International’s prospects and outlook were not as represented; (iv) Verus International’s internal controls for financial reporting and accounting were not sufficient with specific respect to stock-based compensation and classification of equity instruments; (v) as a result, Verus International’s financial results, outlook, and prospects were materially worse than represented; and (vi) as a result of the foregoing, Verus International’s public statements were materially false and misleading at all relevant times.
On February 24, 2020, Verus International announced that its auditor, CBIZ Mayer Hoffman McCann, LLC, advised Verus International that it would need to restate its financials due to certain errors in its prior annual and interim periodic filings for the fiscal year 2018 and the first, second, and third quarter of 2019. On this news, the price of Verus International stock declined.
Thereafter, Verus International disclosed that Verus International was not prepared to capitalize on its Big League Food acquisition and its MLB license as Verus International struggled to fill orders from retailers approximately nine months after the transaction occurred. On this news, the price of Verus International stock declined further.
Finally, on October 8, 2020, Verus International announced that it issued a “Repayment and Notice of Rescission of Transaction” to ZTAM, as a result of “failure of contractual performance and breach of contract.” According to the press release, ZTAM did not register Verus International’s “controlling interest of 51%” as required under the term sheet dated April 3, 2020. At the time of this announcement, the price of Verus International stock closed at just $0.002 per share, a total decline 90.5% from when Verus International announced its controlling interest in ZTAM.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Verus International securities during the Class Period to seek appointment as lead plaintiff in the Verus International 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 Verus International class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Verus International class action lawsuit. An investor’s ability to share in any potential future recovery of the Verus International action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Verus International class action lawsuit or have questions concerning your rights regarding the Verus International class action lawsuit, please provide your information here or contact counsel, Juan Carlos Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the Verus International class action lawsuit must be filed with the court no later than June 22, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.