Nova LifeStyle, Inc. (NASDAQ: NVFY) Investor Securities Class Action Lawsuit 12/28/2018

If you purchased a significant amount of shares of Nova LifeStyle, Inc. (NASDAQ: NVFY) between December 3, 2015 and December 20, 2018, and / or if you purchased any NASDAQ: NVFY shares prior to December 2015 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: February 26, 2019. NASDAQ: NVFY investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Nova LifeStyle
Case Name: 
Nova LifeStyle Shareholder Class Action Lawsuit 12/28/2018
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: NVFY
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/28/2018
Class Period Begin: 
12/03/2015
Class Period End: 
12/20/2018
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
02/26/2019
Summary: 

An investor in shares of Nova LifeStyle, Inc. (NASDAQ: NVFY) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Nova LifeStyle, Inc. in connection with certain allegedly false and misleading statements made between December 3, 2015 and December 20, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Nova LifeStyle, Inc. (NASDAQ: NVFY) common shares between December 3, 2015 and December 20, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between December 3, 2015 and December 20, 2018, the defendants made false and/or misleading statements and/or failed to disclose that Nova Lifestyle overstated its purported “strategic alliance” with Shanxi Wanginq to operate as lead designer and manufacturer for all furnishings in Shanxi Wanginq’s planned $460 million senior care center in China, that Nova Lifestyle inflated its reported sales in 2016 and 2017 with Shanxi Wangqing and Merlino Lewis LLP, and that as a result, Nova Lifestyle’s public statements were materially false and misleading at all relevant times.

Commerce, CA based Nova LifeStyle, Inc., together with its subsidiaries, designs, manufactures, markets, and sells residential and commercial furniture for middle and upper middle-income consumers worldwide. Nova LifeStyle, Inc. reported that its annual Total Revenue rose from $92.64 million in 2016 to $106.49 million in 2017 and that that its Net Loss of $1.11 million in 2016 turned into a Net Income of $3.76 million in 2017.

On December 21, 2018, an article was published reporting evidence of allegedly fictitious sales at Nova LifeStyle, Inc. . Based on the article’s research , Nova LifeStyle, Inc. “booked sales of over $50 million in recent years to two companies that either have been dissolved or do not exist[.]” The report also stated 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).”

Shares of Nova LifeStyle, Inc. (NASDAQ: NVFY) declined to as low as $0.41 per share on December 21, 2018.