LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming September 8, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased J2 Global, Inc. ("J2" or "the Company") (NASDAQ: JCOM) securities between October 5, 2015 and June 29, 2020, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On June 30, 2020 Hindenburg Research released a report claiming "J2’s opaque acquisition approach has opened the door to egregious insider self-enrichment, which we approximate totals $117 million to $172 million based on publicly available information." Hindenburg Research alleges, "We uncovered that J2 acquired a newly formed entity based out of its own VP of Corporate Development’s personal residence for an estimated $20 million. The entity had undefined ‘intellectual property’ and no employees or apparent assets. No conflict was disclosed." The research report also claimed that, "Despite J2’s proxy describing all but one of its board members as ‘independent,’ we found decades of intertwined financial interests between board members and executives, calling that independence into question."
On this news, the Company's share price fell $6.29, or over 9%, to close at $63.21 per share on June 30, 2020, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that J2 Global engaged in undisclosed related party transactions; (2) that J2 Global used misleading accounting to hide requisite impairments and underperformance in acquisitions; (3) that several so-called independent members of the Company’s board of directors and audit committee were not disinterested; and (4) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
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If you purchased or otherwise acquired J2 securities during the Class Period, you may move the Court no later than September 8, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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