BERKELEY, Calif.--(EON: Enhanced Online News)--Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, today reminded investors of the Oct. 21, 2013, deadline to move to be a lead plaintiff in the securities fraud class action against Velti PLC (NASDAQ: VELT) (“Velti” or “The Company”). Persons with information or who have suffered financial losses can contact a Hagens Berman attorney by emailing VELT@hbsslaw.com.
“Clearly, Velti knew before August that it had a huge deadbeat problem with customers in Greece and Cyprus. Our investigators are digging in on these facts.”
Investors who purchased Velti stock between Jan. 27, 2011, and Aug. 20, 2013, (the “Class Period”) are also invited to explore their options by contacting Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000. More information is available at http://hb-securities.com/investigations/VELT.
The lawsuit, filed on Aug. 22, 2013, alleges that Velti misled investors regarding its revenues and receivables. On Aug. 20, 2013, Velti reported Q2 2013 financial results, which included $111 million in write-downs for receivables in its enterprise business. Attorneys say Velti also came clean as to how much of the receivables it had been carrying actually were through its Greek and Cypriot subsidiaries.
Following the announcement, the company's stock price lost more than two-thirds of its value.
Hagens Berman is investigating whether Velti fully disclosed, as required by law, issues that would impact the financial condition of the company, in advance of the Aug. 20, 2013, announcement.
“Velti used to be viewed as a success story in its industry, but the company wasted its cash on acquisitions while its customers in its core business were not paying Velti,” said Hagens Berman Partner Reed Kathrein. “Clearly, Velti knew before August that it had a huge deadbeat problem with customers in Greece and Cyprus. Our investigators are digging in on these facts.”
The deadline to move for the position of lead plaintiff in the case is Oct. 21, 2013.
Persons with non-public information may want to consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
Hagens Berman Sobol Shapiro, LLP is an investor-rights class-action law firm with offices in nine cities including the San Francisco Bay Area where this lawsuit has been filed. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The Firm’s Securities Newsletter is at http://www.hb-securities.com/newsletter.