Oklahoma City, OK (April 6, 2018) – On April 4, 2018, a securities class action lawsuit was filed in the United States District Court for the Central District of California against IZEA, Inc. (NASDAQ: IZEA). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is May 15, 2015 through April 3, 2018. More specifically, this litigation was filed because defendants made false and/or misleading statements and/or failed to disclose that: (1) IZEA was misreporting revenue from the Company’s Content Workflow services as gross amounts billed to marketers instead of on a net transaction basis; (2) the amount IZEA previously reported as gross profit on Content Workflow should be the amount reported as revenue; (3) IZEA lacked adequate internal controls; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On April 2, 2018 IZEA announced that in connection with the preparation of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, the company’s Audit Committee of the Board of Directors (the “Audit Committee”) determined that there was an error in accounting for revenue and cost of sales related to the self-service Content Workflow portion of the company’s revenue. On this news, shares of IZEA fell $0.66 per share, to close at $3.00 per share. The stock price then continued to fall the following trading day, and dropped another $0.58 per share, to close at $2.42 per share on April 3, 2018.
Plaintiff seeks to recover damages on behalf of all IZEA, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, June 4, 2018 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.