Live Ventures Incorporated
Exchange: NASDAQ
Ticker: LIVE
Date of Filing: 08/13/2021
Court: Nevada District Court
Filing Deadline

10/12/2021

Live Ventures Incorporated

On August 3, 2021, the U.S. Securities and Exchange Commission filed a complaint against Live Ventures, its Chief Executive Officer, and its Chief Financial Officer alleging multiple financial, disclosure, and reporting violations related to inflated income and earnings per share, stock promotion and secret trading, and undisclosed executive compensation. Specifically, the SEC alleged that Live Ventures had recorded income from a backdated contract, which increased pre-tax income for fiscal 2016 by 20%, and understated its outstanding share count, which overstated earnings per share by 40%. On this news, the Companys share price fell $29.08, or 46%, to close at $33.50 per share on August 4, 2021, on unusually heavy trading volume. The stock price continued to decline $7.74, or 23%, over the next four consecutive trading sessions to close at $25.76 per share on August 10, 2021. The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Lives earnings per share for FY 2016 was actually only $6.33 per share; (2) that the Company used an artificially low share count to boost the earnings per share by 40%; (3) that Live had overstated pre-tax income for fiscal 2016 by 20% by including $915,500 of other income related to certain amendments that were not negotiated until after the close of the fiscal year; (4) that Lives acquisition of ApplianceSmart did not close during first quarter 2017; (5) that using December 30, 2017 as the acquisition date and recognizing income therefrom did not conform to generally accepted accounting principles; (6) that, by falsely stating that the acquisition closed during the quarter, Live recognized bargain purchase gain, which enabled the Company to report positive net income in what would otherwise have been an unprofitable quarter; (7) that between fiscal 2016 and fiscal 2018, Lives CEO received approximately 94% more in compensation than was disclosed to investors; and (8) as a result, Defendants statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.

Notes:

The alleged class includes : Persons and entities that purchased or otherwise acquired Live Ventures Incorporated (NASDAQ: LIVE) securities between December 28, 2016 and August 3, 2021, inclusive


For More information  as well as to join this case please contact Atara Twersky, Esq. at [email protected] or [email protected].  Atara is Principal at Twersky Law Group and Of counsel at AF&T law firm where she is director of Investor Services.  Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust.  For more information on shareholder recoveries click here and to listen to Atara’s podcast with notable guests in the Pension fund Industry listen to Pension and Investments Podcast, on all matters related to your investment portfolio and more. For more information on  Atara and her legal work connected to shareholder protection click here

DOCUMENTS


COMPLAINT

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