NEW YORK--(EON: Enhanced Online News)--Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court, Southern District of New York, on behalf of all persons who purchased or otherwise acquired any NYSE-traded securities of NQ Mobile, Inc. (“NQ” or the “Company”) (NYSE:NQ) between May 5, 2011 and October 24, 2013, inclusive (the “Class Period”), against the Company and certain of the Company’s officers and directors (“Defendants”). The lawsuit also includes those investors who purchased NQ American Depositary Receipts (“ADRs”) in its initial public offering commencing on May 5, 2011 pursuant to NQ’s registration Statement and Prospectus. The action alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 [15 U.S.C. §§ 77k, 77l(a)(2) and 77o], Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5].
The litigation is styled Ghauri v. NQ Mobile, Inc., et al., C.A. No. 13-cv-7637. A copy of the Complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
NQ purports to provide security solutions for the mobile phone market. As alleged in the Complaint, during the Class Period, NQ released statements regarding, among other things, its financial performance and product efficacy which contained materially false information or omitted information necessary to make those statements not misleading. On October 24, 2013, the short-selling investment firm Muddy Waters LLC issued a detailed 81-page report entitled “NQ Mobile: China Fraud 2.0” regarding NQ’s accounting practices, customer base and policies. Among the allegations raised in the Muddy Waters Report, were that the Company had a Chinese market share of only 1.5%, rather than the 55% share the Company publicly claimed, and that NQ had minimal, if any, cash reserves.
On the release of the Muddy Waters Report, the Company’s share price fell from a close of $22.88 on October 23, 2013 to close at $12.09 on October 24, 2013, and trading was suspended throughout the day.
In ignorance of the false and misleading nature of the statements described in the Complaint, and the deceptive and manipulative devices and contrivances employed by said Defendants, Plaintiff and the other members of the Class relied, to their detriment, on the integrity of the market price of NQ securities. Had Plaintiff and the other members of the Class known the truth, they would not have purchased said securities, or would not have purchased them at the inflated prices that were paid.
If you purchased NQ securities during the Class Period, you may request that the Court appoint you as lead plaintiff by December 27, 2013. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory M. Nespole, Esq.), via e-mail at firstname.lastname@example.org, or visit our website at www.whafh.com. All e-mail correspondence should make reference to “NQ Mobile”.