A securities class action claim was recently filed on the behalf of AudioEye, Inc. shareholders.
A securities class action claim was recently filed to represent AudioEye, Inc. shareholders.AudioEye is a technology firm that aims to provide people everywhere with web access equality and usability. The organization created a Web A11y Management Platform™, which enables publishers by granting them greater control of how easily their web assets can be accessed.
Rosen lawsuit
On April 14, 2015, The Rosen Law Firm announced a shareholder lawsuit representing purchasers of AudioEye securities between May 14, 2014, and April 1, 2015. The lawsuit was brought forth with the intention of recovering damages from company investors under both federal securities laws and also Arizona securities laws.
The securities class action claim filed by The Rosen Law Firm involved claims of false and/or misleading statements and/or failure to disclose key matters. The lawsuit was launched after The Rosen Law Firm announced an investigation on April 7, 2015, which revolved around the technology firm’s financial statements.
“On this news, company shares plunged more than 24 percent to close at $0.31 on April 1, 2015.”
According to the aforementioned inquiry, the company announced April 1, 2015, that, because of errors, it would restate previously issued financial statements for the quarters that ended March 31, 2014, June 30, 2014, and Sept. 30, 2014. In addition, AudioEye revealed that the preliminary earnings release it issued Jan. 12, 2015, for the quarter and year ending Dec. 31, 2014, could no longer be relied upon. On this news, company shares plunged more than 24 percent to close at $0.31 on April 1, 2015.
Specific allegations
The Rosen lawsuit claimed that the false and/or misleading statements – and/or the failures to disclose key information – involved several key matters. More specifically, The legal action alleged that AudioEye’s internal controls over its financial reporting were insufficient, and that the company’s financial statements contained errors related to the classification of both revenues and expenses.
What investors should know
The Rosen Law Firm has informed eligible shareholders that no class has been certified in the aforementioned shareholder lawsuit. Therefore, unless investors hire counsel, they lack representation. For those investors who are eligible and interested in serving as lead plaintiff in in the securities class action claim, the deadline for moving the court is June 15, 2015.