SOURCE: Saxena White P.A.
BOCA RATON, FL--(Marketwired - Sep 6, 2013) - Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the Northern District of California against Velti plc ("Velti" or the "Company") (NASDAQ: VELT) on behalf of investors who purchased or otherwise acquired the common stock of the Company during the period from January 27, 2011 through August 20, 2013 (the "Class Period").
Velti engages in the provision of mobile marketing and advertising technology and solutions for brands, advertising agencies, mobile operators, and media companies primarily in Europe, the Americas, Asia, and Africa.
The complaint brings forth claims for violations of the Securities Exchange Act of 1934. The Complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Velti's statements and reported financial results. Specifically, the Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose:
(1) that the Company was having difficulties collecting certain receivables;
(2) that certain of the Company's receivables were uncollectible;
(3) that, as a result, the Company's revenues and receivables were overstated during the Class Period;
(4) that the Company lacked adequate internal and financial controls; and
(5) that, as a result of the foregoing, the Company's statements and reported financial results were materially false and misleading at all relevant times.
On August 20, 2013, the Company reported its 2013 fiscal second quarter financial results and disclosed that the Company had made the decision to write-down approximately $111 million to its trade receivables and accrued contract receivables relating to its enterprise business. Moreover, the Company announced a "major restructuring" of its business. Furthermore, Velti announced that revenue had decreased 47% to $31.2 million from the second quarter 2012. On this news, shares of Velti declined $0.66 per share, more than 66%, to close at $0.34 per share on August 21, 2013 on unusually heavy trading volume. You may obtain a copy of the Complaint and join the class action at www.saxenawhite.com.
If you purchased Velti stock between January 27, 2011 and August 20, 2013, you may contact Lester Hooker (firstname.lastname@example.org) at Saxena White P.A. to discuss your rights and interests.
If you purchased Velti common stock during the Class Period of January 27, 2011 through August 20, 2013, and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than October 21, 2013. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., located in Boca Raton, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.