Liquidity Services Inc (NASDAQ: LQDT) Investor Securities Class Action Lawsuit 07/14/2014

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Company Name(s): 
Liquidity Services
Case Name: 
Liquidity Services Shareholder Class Action Lawsuit 07/14/2014
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: LQDT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
07/14/2014
Class Period Begin: 
02/01/2012
Class Period End: 
05/07/2014
Court of Filing: 
U.S. District Court for the District of Columbia
Deadline To File for Lead: 
09/12/2014
Date Settled: 
06/21/2018
Settlement Amount: 
$17,000,000
Deadline to Participate in Settlement: 
11/03/2018
Summary: 

June 21, 2018 - The court preliminarily approved the settlement.

June 20, 2018 - Parties filed a stipulation of settlement.

March 31, 2016 - The court granted in part and denied in part defendants' motion to dismiss.

March 2, 2015 - Defendants filed a motion to dismiss.

December 15, 2014 - The lead plaintiffs filed an amended complaint.

October 14, 2014 - The lead plaintiffs and lead counsel were appointed.

September 12, 2014 - Lead plaintiff motions were filed.

July 14, 2014 - An investor in shares of Liquidity Services Inc (NASDAQ: LQDT) filed a lawsuit in the U.S. District Court for the District Court for the District of Columbia against Liquidity Services Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between February 1, 2012 and May 7, 2014.

According to the complaint the plaintiff alleges on behalf of purchasers of Liquidity Services Inc (NASDAQ: LQDT) common shares between February 1, 2012 and May 7, 2014, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims between February 1, 2012 and May 7, 2014, Liquidity Services Inc allegedly falsely represented the financial condition of Liquidity Services Inc in issuing false and misleading statements concerning Liquidity Services Inc's current and future profitability, its growth initiatives including the integration and performance of its acquisitions, the seriousness of the competition in the industry, and the adverse effects of its declining Department of Defense business and the offsetting gains in its commercial and local and state government segments.

Furthermore, the plaintiff alleges that defendants wrongfully portrayed Liquidity Services Incas a profitable, growing company with substantial potential for further growth, and falsely reassured investors that any struggles by Liquidity Services Inc were merely temporary side effects to its lucrative growth initiative and that these material misrepresentations and omissions artificially inflated Liquidity Services Inc’s stock and allowed certain Liquidity Services Inc insiders to receive a windfall from selling Liquidity Services Inc’s stock at inflated prices.

On December 6, 2011, Liquidity Services Inc announces its fourth quarter and fiscal year 2011 financial results. Liquidity Services Inc reported that its Total Revenue rose from $273.01 million for the 12 months period that ended on September 30, 2010 to $327.38 million for the 12 months period that ended on September 30, 2011 while its respective Net Income decreased from $12.01 million to $8.51 million.

Shares of Liquidity Services Inc (NASDAQ: LQDT) grew from $12.65 per share in early 2011 to as high as $64.68 per share in May 2012.

On November 29, 2012, Liquidity Services Inc announced its fourth quarter and fiscal year 2012 financial results. Liquidity Services Inc reported that its Total Revenue rose from $327.38 million for the 12 months period that ended on September 30, 2011 to $475.30 million for the 12 months period that ended on September 30, 2012 and that its respective Net Income increased from $8.51 million to $48.30 million.

On February 7, 2014, Liquidity Services Inc announced its first quarter fiscal year 2014 financial results and on May 8, 2014, announced its second quarter fiscal year 2014 financial results.

Liquidity Services Inc (NASDAQ: LQDT) shares lost significantly value since May 2012 and declined to as low as $12.17 per share on May 7, 2014.

On July 14, 2014, Liquidity Services Inc (NASDAQ: LQDT) shares closed at $13.34 per share.