Robbins Arroyo LLP: Code Rebel Corporation (CDRB) Misled Shareholders According to a Recently Filed Class Action
June 27 2016 - 7:14PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Code Rebel Corporation
(NASDAQCM: CDRB) in the Superior Court of the State of California
for the County of Los Angeles. The complaint is brought on behalf
of all purchasers of Code Rebel securities pursuant to the
company's May 19, 2015 initial public stock offering ("IPO"), for
alleged violations of the Securities Act of 1933 by Code Rebel's
officers and directors. Code Rebel is a software and information
technology services company.
View this information on the law firm's Shareholder Rights Blog:
https://www.robbinsarroyo.com/shareholders-rights-blog/code-rebel-corporation/
Code Rebel Accused of Misrepresenting Its Financial
Condition
According to the complaint, on May 19, 2015, Code Rebel held its
IPO, selling over one million shares at $5.00 per share and raising
more than $5 million. The offering documents filed in connection
with the IPO included Code Rebel's financial statements for the
fiscal years 2013 and 2014. The company also included a report from
an independent public accounting firm which stated that Code
Rebel's financial statements fairly represented the financial
position of the company and the results of its operations and cash
flows were in conformity with accounting principles generally
accepted in the United States. Code Rebel further stated in the
offering documents that it was undertaking steps to comply with the
requirements of being a public company, including implementing new
internal controls and procedures.
The complaint alleges that the offering documents filed in
connection with the IPO were misleading because they failed to
disclose that Code Rebel's financial statements contained errors
regarding its assets and financial condition and the company's
steps to ensure compliance were ineffective. On May 6, 2015, the
U.S. Securities and Exchange Commission issued an order suspending
the trading of Code Rebel's stock because of questions regarding
the accuracy of the company's statements concerning its assets and
financial condition. On May 18, 2016, Code Rebel filed for
bankruptcy in the U.S. Bankruptcy Court for the District of
Delaware. On May 23, 2016, shares of the company resumed trading
and fell $2.11 per share, or over 97%, to close at $0.05 per
share.
Code Rebel Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
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.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160627006450/en/
Robbins Arroyo LLPDarnell R. Donahue619-525-3990 or Toll Free:
800-350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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