NQ Mobile Inc (ADR) (NYSE: NQ) Investor Securities Class Action Lawsuit 02/10/2018

If you purchased shares of NQ Mobile Inc (ADR) (NYSE: NQ), you might have certain options and should contact the Shareholders Foundation, Inc.

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Company Name(s): 
NQ Mobile
Case Name: 
NQ Mobile Shareholder Class Action Lawsuit 02/10/2018
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Eastern District of Texas
Deadline To File for Lead: 

May 31, 2018 - Lead plaintiff and lead counsel were appointed.

April 11, 2018 - Lead plaintiff motions were filed.

February 10, 2018 - An investor in shares of NQ Mobile Inc (ADR) (NYSE: NQ) filed a lawsuit in the U.S. District Court for the Eastern District of Texas over alleged violations of Federal Securities Laws by NQ Mobile Inc in connection with certain allegedly false and misleading statements made between March 30, 2017 and February 6, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of NQ Mobile Inc (ADR) (NYSE: NQ) common shares between March 30, 2017 and February 6, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 30, 2017 and February 6, 2018, the defendants made materially false and/or misleading statements and/or failed to disclose that NQ Mobile Inc failed to disclose related party transactions involving the Transaction between NQ Mobile Inc and Tongfang, that due to the related parties involved in the Transaction, NQ Mobile Inc agreed to consideration in the form of a note with a high likelihood of default, that defendant Shi’s interest in the Transaction was not fully disclosed, and that as a result, defendants’ statements about NQ Mobile Inc’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

China based NQ Mobile Inc is a global provider of mobile Internet services. NQ Mobile Inc reported that its annual Total Revenue declined from $406.69 million in 2015 to $343.05 million in 2016 and that its Net Loss increased from $1.30 million in 2015 to $127.59 million in 2016.

On February 6, 2018, a report was published entitled "NQ Mobile: Undisclosed Transfer Of Subsidiaries To Chairman Introduces Significant Risks - Price Target $0." Citing a review of Chinese corporate records, the report's author concluded that "insiders control Tongfang Investment Fund, the firm that recently acquired NQ's mobile gaming and video businesses" and stated that "[o]ur research leads us to doubt every aspect of the transaction, including the cash payments and the $270 million note receivable, which together represents over 100% of NQ's market cap."

Shares of NQ Mobile Inc (ADR) (NYSE: NQ) declined on February 6, 2018 to $1.68 per share.

On February 9, 2018, NYSE: NQ shares closed at $2.02 per share.