FOR IMMEDIATE RELEASE
WASHINGTON, D.C. March 2, 2018 – Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether NQ Mobile Inc. (“NQ Mobile” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Eastern District of Texas by another law firm on behalf of purchasers of the securities of NQ Mobile Inc. (NSYE: NQ) between March 30, 2017 and February 6, 2018, inclusive (the “Class Period”).
On March 30, 2017, the Company made an announcement about transactions:
NQ Mobile Inc. […] today announced that the Company had entered into definitive agreements (the “Agreements”) with Tongfang Investment Fund Series SPC (the “Investor”), an affiliate of Tsinghua Tongfang. Pursuant to the terms of the Agreements, the Investor will acquire (i) 63% equity interests in FL Mobile Jiutian Technology Co., Ltd. (“FL Mobile”), being all of the equity interests beneficially owned by the Company, for a cash consideration of RMB2,520 million, valuing the entire FL Mobile business at RMB4 billion and (ii) 65% equity interests in Beijing Showself Technology Co., Ltd (“Beijing Showself”), a live social video business, being all of the equity interests beneficially owned by the Company, for a cash consideration of RMB800 million, valuing the entire Beijing Showself live social video business at RMB1,230 million (together, the “Transactions”).
The complaint alleges that NQ Mobile Inc. and certain of its officers and directors (“Defendants”): (1) failed to disclose that the Transactions involved related party transactions between NQ Mobile and Tongfang; (2) defendant Vincent Wenyong Shi, NQ Mobile’s Chairman and co-founder, did not fully disclose his interest in the Transactions; (3) because of the undisclosed relationships, NQ Mobile agreed to consideration in the form of a note with a high likelihood of default; and (4) as a result, Defendants' statements about NQ Mobile's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis.
On February 6, Seeking Alpha published a report titled “NQ Mobile: Undisclosed Transfer of Subsidiaries to Chairman Introduces Significant Risks - Price Target $0” asserting that the Company did not adequately disclose defendant Shi’s involvement in the Transactions. NQ Mobile ADRs fell from $2.98 to $1.68 on February 6.
Cohen Milstein encourages all investors who purchased NQ Mobile ADRs between March 30, 2017 and February 6, 2018, or former employees with information concerning this matter to contact the firm.
If you are an NQ Mobile shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than April 11, 2018 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for many outstanding recoveries which, in the aggregate, total billions of dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or regarding your rights, please contact either of the following:
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W., Fifth Floor
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600