NQ MOBILE, INC. (ADR) [NYSE: NQ]: Kaplan Fox & Wites & Kapetan File Securities Class Action on Behalf of Purchasers of NQ Mob...
December 04 2013 - 1:17PM
Marketwired
NQ MOBILE, INC. (ADR) [NYSE: NQ]: Kaplan Fox and Wites &
Kapetan File Securities Class Action on Behalf of Purchasers of NQ
Mobile American Depositary Shares During the Period May 5, 2011 and
October 24, 2013
NEW YORK, NY--(Marketwired - Dec 4, 2013) - Kaplan Fox &
Kilsheimer LLP (www.kaplanfox.com) and Wites & Kapetan, P.A.
(www.wklawyers.com) have filed a class action suit against NQ
Mobile, Inc. ("NQ Mobile" or "Company") (NYSE: NQ), and certain
officers and directors of the Company, alleging violations of the
Securities Act of 1933 and the Securities Exchange Act of 1934 on
behalf of purchasers of NQ Mobile ADRs during the period May 5,
2011 through October 24, 2013, inclusive (the proposed "Class"),
including investors who purchased ADRs in the May 2011 IPO
underwritten by Piper Jaffray & Co., Oppenheimer & Co., and
Canaccord Genuity.
The complaint alleges that NQ Mobile, formerly "Netqin Mobile
Inc.," is a Cayman Islands company with dual headquarters in Texas
and China. Founded in 2005, NQ Mobile claims to provide mobile
internet security services, privacy and virus protection, parental
control, video games and productivity solutions for mobile
phones. In May 2011, the Company went public with an IPO (the
"IPO") issuing 7.75 million ADRs, representing 38.75 million Class
A common shares.
On October 24, 2013, research company Muddy Waters LLC issued an
81-page report (click here) which began, "NQ is a massive
fraud." Among other things, Muddy Waters reported that a
majority of NQ's China revenue is fraudulent; its largest customer
is actually owned by the Company; NQ's market share was overstated
several times over; the Company's most important product, its
"Antivirus 7.0," was actually spyware that made customer phones
more susceptible to hacking; NQ is surreptitiously gathering
personally identifiable information from customer phones without
their knowledge or consent and transmitting back to the Company in
China; and several acquisitions were actually shell
companies. NQ shares plunged on the news, falling from $22.98
per share to $12.09 in one day. The Company's market
capitalization fell from more than $1 billion to approximately $500
million, wiping out approximately half a billion dollars of
shareholder value in a single day. Trading was halted.
On November 3, 2013, Bloomberg News published an article
confirming many of Muddy Waters' accusations. Two days later,
on November 5, 2013, the Company's own lead manager in the IPO,
Defendant Piper Jaffray, announced it had suspended its rating on
the stock. Erik Lam, director of Asian equity sales at
Auerbach Grayson & Co., said "Obviously it would cause
tremendous concern, especially if it's the IPO lead
manager." Shares plunged further, closing at $9.52.
If you are a member of the proposed Class, you may move the
court no later than December 27, 2013 to serve as a
lead plaintiff for the proposed Class. You need not seek to become
a lead plaintiff in order to share in any possible recovery.
The case was filed in the United States District Court for the
Eastern District of Texas.
Plaintiff seeks to recover damages on behalf of the Class and is
represented by Kaplan Fox & Kilsheimer LLP and Wites &
Kapetan, P.A. For more information about the complaint, or if
you would like to obtain a copy of the complaint, you may contact
Kaplan Fox (www.kaplanfox.com) or Wites & Kapetan
(www.wklawyers.com).
If you have any questions about this Notice, the action, your
rights, or your interests, please contact: Donald R. Hall KAPLAN
FOX & KILSHEIMER LLP 850 Third Avenue, 14th Floor New York, New
York 10022 (800) 290-1952 (212) 687-1980 Fax: (212) 687-7714 Email:
dhall@kaplanfox.com Marc A. Wites WITES & KAPETAN, P.A. 4400
North Federal Highway Lighthouse Point, FL 33064 (954) 570-8989
Fax: (954) 354-0205 Email: mwites@wklawyers.com
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