Liquidity Services receives class action lawsuit

A law office recently noted that it filed a securities class action lawsuit against a surplus asset service company due to allegations of federal securities law violations.

Law firm Wolf Haldenstein Adler Freeman and Herz, LLP, explained that the litigation was filed in the U.S. District Court for the District of Columbia against the leaders of Liquidity Services, Inc. This includes all shareholders who acquired interests in the company during the class period between Feb. 1, 2012 and May 7, 2014.

The allegations in the lawsuit include the company's leaders potentially violating the Securities Exchange Act of 1934, specifically Sections 10(b), 20(a) and Rule 10b-5. Additionally, the company may have misrepresented its financial standing during the class period.

It is an option for those shareholders who acquired stock during the aforementioned class period to apply for the lead plaintiff position. All paperwork needs to be mailed by Sept. 12, 2014. This is not a mandatory position, and shareholders still have the ability to take no action, remain absent class members and still collect in the event of a financial return. Those who do decide to apply for the position will need to be approved by the court, as they need to be capable of adequately representing the class.

Shareholders also have the ability to discuss matters related to the lawsuit and lead plaintiff position with the law office. Representatives are available to be reached by telephone or email. There is also information available on the law firm's website.

Separate investigation begins
Another litigation firm noted that it was looking into the issues related to Liquidity Services. There is a potential for this to also become a class action lawsuit in the future.

Law office Levi and Korsinsky, LLP, noted that it began investigating the leaders at Liquidity Services due to a potential that the company's leaders breached fiduciary duty. These allegations were due to the company having several earning projections that were not met during the class period. However, it gained a significant number of shareholders during the period.

It is also an option for shareholders to discuss matters related to the investigation with this law office. The best person to speak with is Eduard Korsinsky, and he can be contacted by telephone or email. Further details are available on the law office's website.