11-16-2011, 05:16 PM
|
|
|
Confirmed User
Industry Role:
Join Date: Dec 2004
Location: Las Vegas
Posts: 1,051
|
FFN sued - stock tanks even more
Apologies if already posted.
$1.39 at close today. (down another 5%)
Quote:
|
Block & Leviton LLP announced that it has filed suit against FriendFinder Networks, Inc. FFN's officers, directors and two underwriters ? Ladenburg Thalmann & Co. Inc. and Imperial Capital LLC ? are also named as defendants. The lawsuit, captioned Greenfield Childrens Partnership v. FriendFinder Network, Inc. et al., 11-cv-24098, is pending in the United States District Court for the Southern District of Florida. The lawsuit alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 on behalf of investors who purchased or otherwise acquired FFN's common stock pursuant to the May 11, 2011 public offering of its common stock. The complaint asserts that FFN, its officers, directors and Underwriters made false and misleading statements and omissions in the Registration Statement and Prospectus dated May 10, 2011 and May 11, 2011, respectively According to the May Offering Documents, after the offering there would be approximately 26.7 million common shares outstanding. Of these shares, at least 20.9 million were subject to a 180 day lock-up period, during which the shares could not be traded. These statements are alleged to have been false and misleading when made because: a material number of the Restricted Shares were publicly traded during the lock-up period; and the Company was suffering from grossly deficient internal controls and therefore was unable to abide by the terms of the May Offering Documents.
|
|
|
|