NEW YORK, Dec. 17, 2013 (GLOBE NEWSWIRE) -- On November 14, 2013, Scott+Scott, Attorneys at Law, LLP filed a class action complaint against NQ Mobile Inc. ("NQ" or the "Company") in the U.S. District Court for the Southern District of New York. The complaint, which seeks remedies under the Securities Act of 1933 and the Securities Exchange Act of 1934, was filed on behalf of those persons and entities who purchased or otherwise acquired NQ American Depositary Shares (NYSE:NQ): (i) between May 5, 2011 through October 24, 2013, inclusive (the "Class Period"); and/or (ii) pursuant and/or traceable to the registration statement issued in connection with the Company's initial public offering that commenced on May 5, 2011 (the "IPO" or "Offering"). The complaint alleges that NQ issued materially false and misleading statements regarding the Company's business and financial prospects during the Class Period and in connection with the Company's IPO.
Investors who purchased NQ American Depositary Shares during the Class Period or in the Company's IPO and wish to serve as a lead plaintiff in the class action must move the Court no later than December 27, 2013. Members of the investor class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain absent class members in the lawsuit. If you wish to view the complaint, discuss the NQ litigation, or have questions concerning this notice or your rights, please contact Michael Burnett of Scott+Scott (email@example.com, (800) 404-7770, (860) 537-5537) or visit the Scott+Scott website for more information: http://www.scott-scott.com.
There is no cost or fee to you.
Founded in 2005 and headquartered in Beijing, PRC, NQ provides various mobile Internet services. The company was formerly known as NetQin Mobile Inc. and changed its name to NQ Mobile Inc. in April 2012.
On May 5, 2011 NQ commenced its IPO of American Depositary Shares (NYSE:NQ). The shares were priced at $11.50 per share. Following the IPO, and during the Class Period, NQ share prices increased significantly, climbing to nearly $25 per share in October 2013.
Then, on October 24, 2013, equity research firm Muddy Waters LLC initiated coverage on NQ with a "Strong Sell" rating and a projected target price of less than $1. Among other things, Muddy Waters' research report states: (i) at least 72% of NQ's reported $32.2 million in 2012 China security software revenue is fraudulent, NQ's real security revenue was $2.5 million to $7.7 million; (ii) NQ's largest customer is actually an empty shell company controlled by NQ; (iii) NQ's real market share in China is only about 1.4%, versus the approximately 55% it reports; (iv) NQ's international revenues are wildly overstated; and (v) the vast majority of the $127.9 million cash and investments NQ reported having as of December 31, 2012 is not actually in the Company's accounts.
Upon the release of this information, on October 24, 2013, NQ shares declined 47% to $12.09 per share from $22.88 per share, on unusually heavy volume of 29.3 million shares traded, resulting in millions of dollars in losses to NQ shareholders.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide.
CONTACT: Michael Burnett Scott+Scott, Attorneys at Law, LLP (800) 404-7770 (860) 537-5537 firstname.lastname@example.orgSource: Scott+Scott LLP