Velti Plc (NASDAQ: VELT) Investor Securities Class Action Lawsuit 08/22/2013

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Company Name(s): 
Velti
Case Name: 
Velti Shareholder Class Action Lawsuit 08/22/2013
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: VELT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/22/2013
Class Period Begin: 
01/27/2011
Class Period End: 
08/20/2013
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
10/21/2013
Date Settled: 
11/07/2014
Settlement Amount: 
$750,000
Deadline to Participate in Settlement: 
01/18/2017
Settlement Notice: 
Settlement Proof: 
Summary: 

July 28, 2016 - Parties (lead plaintiffs and remaining defendants) filed a stipulation of settlement.

April 18, 2016 - The court ordered the authorization of the distribution of the net settlement fund.

February 29, 2016 - The parties agreed to a settlement in principle.

December 1, 2015 - The lead plaintiffs filed a notice of appeal.

November 3, 2015 - The court entered a judgement for defendants since plaintiffs filed a notice of intent not to file a third amended complaint.

October 1, 2015 - The court granted defendants' motions to dismiss and dismissed the case with leave to amend.

May 18, 2015 - Defendants filed motions to dismiss.

April 13, 2015 - The lead plaintiffs filed an amended consolidated complaint.

February 27, 2015 - The court in part granted defendants motions to dismiss with leave to amend and in part denied defendants' motions to dismiss.

February 3, 2015 - The court approved the partial settlement, entered the orders approving the plan of allocation and approved the motion for attorneys’ fees and expenses.

October 15, 2014 - Defendants filed motions to dismiss.

August 20, 2014 - The court preliminarily approved the partial settlement.

August 12, 2014 - The lead plaintiffs filed another amended consolidated complaint.

May 24, 2014 - Parties filed a stipulation of partial settlement.

April 22, 2014 - The lead plaintiff filed an amended consolidated complaint.

December 3, 2013 - The lead plaintiffs and lead counsel were appointed and all cases were consolidated.

October 21, 2013 - Lead plaintiff motions were filed.

August 22, 2013 - An investor, who purchased shares of Velti plc (NASDAQ: VELT), filed a lawsuit in the U.S. District Court for the Northern District of California against Velti plc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between January 27, 2011 and August 20, 2013.

According to the complaint the plaintiff alleges, on behalf of all persons or entities who purchased or otherwise acquired securities of Velti plc (NASDAQ: VELT) between January 27, 2011 and August 20, 2013, that Velti plc and certain of its officers violated the Securities Exchange Act of 1934.
More specifically, the plaintiff alleges that the defendants made false and/or misleading statements and/or failed to disclose that Velti plc was having difficulties collecting certain receivables, that certain of Velti plc's receivables were uncollectible, that, as a result, Velti plc's revenues and receivables were overstated between January 27, 2011 and August 20, 2013, that Velti plc lacked adequate internal and financial controls, and that, as a result of the foregoing, Velti plc's statements and reported financial results were materially false and misleading at all relevant times.

Velti plc reported that its annual Total Revenue rose from $116.27 million in 2010 to $270.34 million in 2012 while its respective Net Loss increased from $15.67 million to $61.23 million. Shares of Velti plc (NASDAQ: VELT) traded in July 2011 as high as $19.70 per share and declined in the end of 2012 to as low as $3.41 per share.

On August 20, 2013, Velti plc announced its second quarter 2013 results. Among other things, Velti plc said that it engaged Deloitte Financial Advisory Services to assist in evaluating the near-term and longer-term collectability of receivables on the books of its Greek and Cypriot subsidiaries and that as a result of this evaluation, Velti plc is taking a charge in Q2 of approximately $111 million to its trade receivables and accrued contract receivables relating to its enterprise business, which primarily sold customized mobile marketing platforms to customers with operations principally within Greece and Cyprus. Velti plc also said that it began a major restructuring.

Shares of Velti plc (NASDAQ: VELT) declined from $1.03 per share on August 20, 2013, to $0.344 per share on August 23, 2013.