NEW YORK, Dec. 18, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Fab Universal Corporation ("Fab Universal" or the "Company") (AMEX:FU) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 13 CIV 8716, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Fab Universal securities between June 15, 2012 and November 18, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Fab Universal securities during the Class Period, you have until January 17, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Fab Universal engages in the distribution of digital entertainment products and services worldwide through three segments: wholesale, retail and kiosk/licensing.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that it overstated the number of Kiosks it has deployed in the People's Republic of China (the "PRC"), its Kiosks are inundated with pirated digital entertainment content and its Chinese subsidiary issued RMB 100 million ($16.4 million) of bonds to Chinese investors.
On November 14, 2013, analyst firm Alfredlittle.com ("Alfred Little") issued a report asserting that the Company's financial performance, business prospects, and true financial condition have been overstated. On this news, shares of Fab Universal fell $0.21 per share or more than 4%, from $5.46 per share to $5.25 per share on November 14, 2013.
On November 18, 2013, analyst firm GeoInvesting.com ("GeoInvesting") issued a Report revealing the bond offering which it asserts should have been disclosed in the Company's 2013 Second Quarter l0-Q and 2013 Third Quarter l0-Q. On this news, shares of Fab Universal fell $0.89 cents per share or more than 16.82% from a close of $5.29 on November 15, 2013 to a close of $4.40 on November 18, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP email@example.comSource:Pomerantz Grossman Hufford Dahlstrom & Gross LLP