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Oklahoma City, OK (January 2, 2019) – On December 28, 2018, a securities class action lawsuit was filed in the United States District Court for the Central District of California against Nova Lifestyle, Inc. (NASDAQ: NVFY). 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 3, 2015 through December 20, 2018. More specifically, the complaint filed in this class action alleges that the Company made false and misleading statements to the market. Nova Lifestyle mischaracterized its supposed “strategic alliance” with Shanxi Wangqing, which the Company claimed had named it lead designer provider of all furnishings for a $460 million senior center in China. Nova Lifestyle inflated its reported revenues in 2016 and 2017 in conjunction with Shanxi Wangqing and Merlino Lewis LLP. Based on these facts, the Company’s public statements were materially false and misleading at all relevant times.
On December 21, 2018, a report by Andri Capital indicated improper sales at Nova, alleging the company had “booked sales of over $50 million in recent years to two companies that either have been dissolved or do not exist” and that “other supposedly large customers of [Nova LifeStyle] do not seem to recognize doing business with Nova LifeStyle (possibly for over $60 million since 2011).” Following this news, Nova’s stock price fell sharply on December 21, 2018.
Plaintiff seeks to recover damages on behalf of all Nova Lifestyle, 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 Tuesday, February 26, 2019 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.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org