Velti Plc Sued by Investor
SAN DIEGO and DUBLIN, Aug. 26, 2013
SAN DIEGOand DUBLIN, Aug. 26, 2013 /PRNewswire/ --Shareholder rights
attorneys at Robbins Arroyo LLP announce that an investor of Velti Plc
(NASDAQ: VELT) ("Velti") has filed a complaint in the U.S. District Court for
the Northern District of California. The complaint alleges that the company
and certain of its officers and directors violated the Securities Exchange Act
of 1934 between January 27, 2011 and August 20, 2013 (the "Class Period").
Velti provides mobile marketing and advertising technology and solutions for
brands, advertising agencies, mobile operators, and media companies primarily
in Europe, the Americas, Asia, and Africa.
Velti Accused of Making False and Misleading Statements
According to the complaint, Velti made false and/or misleading statements
regarding the company's business operations and prospects. Specifically, the
complaint alleges that the Velti and certain officers and directors failed to
disclose difficulties experienced by the company collecting certain
receivables. Further, the company failed to disclose that certain of its
receivables were uncollectible and responsible for overstatements to Velti's
receivables during the Class Period. As a result of these false and
misleading statements and omissions, Velti's shares traded at artificially
inflated prices during the Class Period.
Velti Stock Price Drops on News of Restructuring and Write-Down of Receivables
According to the complaint, on August 20, 2013, Velti announced that the
company was evaluating the collectability of receivables on the books of its
Greek and Cypriot subsidiaries. As a result, the company was forced to take a
charge of approximately $111 million to its trade and accrued contract
receivables relating to its enterprise business. In addition, the company
also announced that it would undertake a major restructuring of its business.
On this news, Velti stock price declined nearly 66%, or $0.66, to close at
$0.34 per share on August 21, 2013.
If you invested in Velti and would like to discuss your shareholder rights,
please contact attorney Darnell R. Donahue at (800) 350-6003,
firstname.lastname@example.org, or via the shareholder information form on the
Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. For more information, please
go to http://www.robbinsarroyo.com.
Press release link:
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free at (800) 350-6003
SOURCE Robbins Arroyo LLP
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