Class Action Lawsuit Filed Against Exela Technologies On Behalf of Persons or Entities That Purchased, Or Otherwise Acquired, Exela Securities Between March 16, 2018 and March 16, 2020, Both Dates Inclusive – Kehoe Law Firm, P.C. Investigating Securities Claims on Behalf of XELA Investors Who Suffered Losses
On March 23, 2020, a class action lawsuit was filed in United States District Court for the Northern District of Texas, on behalf of persons or entities who purchased, or otherwise acquired, the publicly-traded securities of Exela Technologies, Inc. (“Exela” or the “Company”) (NasdaqCM: XELA) from March 16, 2018 through March 16, 2020, both dates inclusive (the “Class Period”). The Plaintiff seeks to recover compensable damages caused by the XELA Defendants’ alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
According to the class action complaint, Exela made materially false and/or misleading statements, because they misrepresented and failed to disclose adverse facts pertaining to Exela’s business, operations, and prospects, which were known to the Exela Defendants or recklessly disregarded by them. Specifically, the Exela Defendants made false and/or misleading statements and/or failed to disclose that: (1) Exela’s previously issued financial statements for the twelve months ended December, 31, 2017 and December 31, 2018, and the quarterly statements for the three and nine months ended September 30, 2019 contained numerous accounting errors, could not be relied upon, and required restatement; and (2) as a result, the Exela Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Exela Announces Delayed Filing of Form 10-K For Fiscal 2019 & The Need To Restate Financial Statements For Fiscal Years 2017/2018 And Interim 2019 Statements
According to the class action complaint, on March 16, 2020, Exela issued a press release announcing that the Company would be postponing its earnings and conference call due to a delayed filing of Exela’s Form 10-K for fiscal year 2019.
On this news, the Exela’s shares fell $0.0154 per share, or more than 8.3%, to close at $0.17 per share on March 17, 2020.
According to the class action complaint, on March 17, 2020, Exela issued a press release announcing that in addition to not being able to file the Company’s Form 10-K on time, Exela also would need to restate its financial statements for fiscal years 2017 and 2018, as well as its interim 2019 statements.
On this news, Exela’s shares fell an additional $0.025 per share, or more than 14.7%, to close at $0.145 per share on March 18, 2020.
Exela investors who purchased, or otherwise acquired, XELA securities during the Class Period and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the class action lawsuit or potential legal claims.