Liberty Tax Inc (NASDAQ:TAX) Investor Securities Class Action Lawsuit 12/15/2017

If you purchased a significant amount of shares of Liberty Tax Inc (NASDAQ:TAX) between June 29, 2016 and December 11, 2017, and / or if you purchased any NASDAQ:TAX shares prior to June 2016 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: February 13, 2018. NASDAQ:TAX 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): 
Liberty Tax
Case Name: 
Liberty Tax Shareholder Class Action Lawsuit 12/15/2017
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: TAX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/15/2017
Class Period Begin: 
06/29/2016
Class Period End: 
12/11/2017
Court of Filing: 
U.S. District Court for the Eastern District of New York
Deadline To File for Lead: 
02/13/2018
Summary: 

An investor in shares of Liberty Tax Inc (NASDAQ:TAX) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Liberty Tax Inc in connection with certain allegedly false and misleading statements made between June 29, 2016 and December 11, 2017.

According to the complaint the plaintiff alleges on behalf of purchasers of Liberty Tax Inc (NASDAQ:TAX) common shares between June 29, 2016 and December 11, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between June 29, 2016 and December 11, 2017, the defendants made false and/or misleading statements and/or failed to disclose that Liberty Tax’s former CEO John T. Hewitt created an inappropriate tone at the top, that the inappropriate tone at the top led to ineffective entity level controls over the organization, and that as a result, defendants’ statements about Liberty Tax’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

Virginia Beach VA based Liberty Tax, Inc. is the holding company for JTH Tax, Inc. The Company is a provider of tax preparation services. Liberty Tax Inc reported that its Total Revenue rose from $173.43 million for the 12 months period that ended on April 30, 2017 to $173.99 million for the 12 months period that ended on April 30, 2017 and that its Net Income declined from $19.42 million to $13.01 million.

On September 6, 2017, Liberty Tax Inc announced that its founder and Chief Executive Officer ("CEO") John T. Hewitt had been terminated.
On November 7, 2017, Liberty Tax Inc ax announced the resignation of Kathleen Donovan, its Vice President and Chief Financial Officer.
On December 11, 2017, Liberty Tax filed a Form with the SEC, reporting that KPMG LLP resigned as its independent registered public accounting firm and that Liberty Tax will delay the filing of its quarterly report on Form 10-Q for the quarter ended October 31, 2017. KPMG reportedly expressed concerns regarding internal controls over financial reporting as related to the integrity and tone at the top set by Liberty Tax's former CEO John T. Hewitt.

Shares of Liberty Tax Inc (NASDAQ:TAX) declined to as low as $10.70 per share on December 12, 2017.