Class Action Filed on Behalf of All Persons or Entities Who Purchased, or Otherwise Acquired, NQ Mobile Inc. Securities Between March 30, 2017 and February 6, 2018, Both Dates Inclusive
Kehoe Law Firm, P.C. continues its investigation on behalf of investors and shareholders who purchased NQ securities and announces that a class action has been filed in United States District Court, Eastern District of Texas, on behalf of all persons or entities who purchased, or otherwise acquired, NQ Mobile Inc. (NYSE:NQ) securities between March 30, 2017 and February 6, 2018, both dates inclusive (the “Class Period”) to try to recover compensable damages caused by the NQ Mobile Defendants’ alleged violations of federal securities laws.
NQ Mobile – “Price Target $0”; Doubts About NQ’s “Purported Values”
On February 6, 2018, a report (“NQ Mobile: Undisclosed Transfer Of Subsidiaries To Chairman Introduces Significant Risks – Price Target $0”) was published by Rota Fortunae on SeekingAlpha stating, among other things, that
Chinese corporate records lead us to believe that insiders control Tongfang Investment Fund, the firm that recently acquired NQ’s mobile gaming and video businesses.
One day after the deal with Tongfang was announced and eight months before it closed, NQ transferred its interest in FL Mobile and Showself to its Chairman, Vincent Wenyong Shi.
Our research leads us to doubt every aspect of the transaction, including the cash payments and the $270 million note receivable, which together represents over 100% of NQ’s market cap.
We find alarming similarities between NQ and Ambow Education, and we think NQ is likely to default when its convertible debt comes due in October 2018.
The US phone number listed on press releases has been disconnected; the US HQ is for lease.
The Rota Fortunae report on SeekingAlpha also stated that
[d]espite being called a zero, NQ’s market cap has hovered around $400 million, ostensibly supported by hundreds of millions in cash and the value of its mobile gaming business. But we have serious doubts about their purported values, and we recently uncovered an undisclosed transaction with NQ’s chairman that leads us to believe the end is finally near.
On this news, shares of NQ Mobile (NYSE:NQ) fell $1.30, or over 43%, to close at $1.68 on February 6, 2018.
NQ Mobile Shareholders and Investors
If you purchased, or otherwise acquired, NQ Mobile Inc. securities between March 30, 2017 and February 6, 2018, both dates inclusive, and have questions or concerns about the investigation or your potential legal rights, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].