Federman & Sherwood Investigates Xoom Corporation
For Possible Violations of Federal Securities Laws
Oklahoma City, OK (January 7, 2015) – The law firm of Federman & Sherwood has initiated an investigation into Xoom Corporation [NASDAQ: XOOM] and certain of its officers and/or directors with respect to possible violations of federal securities laws.
The Company announced on January 5, 2015 in a Securities and Exchange Commission ("SEC") filing that "on December 30, 2014, Xoom Corporation (the "Company") determined that it had been the victim of a criminal fraud. The incident involved employee impersonation and fraudulent requests targeting the Company's finance department, resulting in the transfer of $30.8 million in corporate cash to overseas accounts. As a result, the Company expects to record a one-time charge of $30.8 million in its fourth quarter of 2014. The Company believes that no customer data was involved nor was any customer's money involved in this matter and the Company's systems were not impacted. While this matter will result in some additional near-term expenses, the Company does not expect this incident to otherwise have a material impact on its business.
On January 2, January 3, and January 4, 2015, the Company's audit committee met to discuss the matter and authorized an independent investigation, to be assisted by outside advisors. While the Company has internal controls in place and has implemented additional internal procedures, its audit committee and advisors are reviewing these controls and processes as part of the investigation. The Company has contacted federal law enforcement authorities who are actively pursuing a multi-agency criminal investigation."
The Company also announced after the market closed on January 5, 2015 that its CFO Matt Hibbard resigned. Hibbard's departure "is not the result of any disagreement or dispute with the Company." Ryno Blignaut will replace Hibbard as acting CFO.
On this news, the Company’s shares declined in intraday trading on January 6, 2015.
If you currently own common stock in Xoom Corporation, have any information to assist in our investigation, or have questions or concerns regarding this notice or your rights or interests in this matter, please click here to download and complete our Certification of Investment or you may contact William B. Federman with any questions you may have regarding this investigation. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases across the country.
Posted on Wed, January 7, 2015
by Robin Hester filed under