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Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Longfin Corp.

Oklahoma City, OK (April 4, 2018) – On April 3, 2018, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Longfin Corp. (NASDAQ: LFIN).  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 December 15, 2017 through April 2, 2018.  According to the Complaint, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Longfin included several false statements in its SEC filings in connection with its IPO which prompted an SEC investigation, including wrongly representing Defendant Meenavalli’s age, location of Longfin’s principal offices, and listing Sarah Altahawi as an officer when she did not have that position; (2) Longfin acquired Ziddu.com shortly after the IPO to capitalize on the popularly of blockchain companies in order to manipulate the Company’s stock price; (3) Longfin’s acquisition of Ziddu.com prompted an SEC investigation; (4) Longfin knew that it was ineligible to be listed on the Russell 2000 and 3000 indices; and (5) as a result of the foregoing, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On March 26, 2018, Citron Research, a noted short seller, sent a tweet alerting investors that Longfin “is a pure stock scheme” and that an SEC enforcement action should not be far behind as “[f]ilings and press releases are riddled with inaccuracies and fraud.” CNBC wrote also the article “Shares of cryptocurrency play Longfin drop after short seller Citron calls it a ‘pure stock scheme.’”

Then, on April 2, 2018, Longfin filed its annual report on Form 10-K for the year ended December 31, 2017 with the SEC disclosing an SEC probe into the documents related to the IPO and acquisition of Ziddu.com. Further, on the same day, The Wall Street Journal published the article, “Up-and-Down IPO Longfin Is Facing an SEC Probe,” which discussed the SEC’s investigation into Longfin.  On this news, shares of Longfin declined, closing at $9.89 per share on April 3, 2018, on heavy trading volume.

Plaintiff seeks to recover damages on behalf of all Longfin Corp. 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 rkh@federmanlaw.com, 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.

 

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