BENSALEM, Pa.--(BUSINESS WIRE)--
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased or otherwise acquired Nova Lifestyle, Inc. (“Nova Lifestyle” or the “Company”) (NASDAQ: NVFY) securities between December 3, 2015 and December 20, 2018, inclusive (the “Class Period”). Nova Lifestyle investors have until February 26, 2019 to file a lead plaintiff motion.
On December 21, 2018, a report by Andri Capital indicated improper sales at Nova, alleging the company had “booked sales of over $50 million in recent years to two companies that either have been dissolved or do not exist” and that “other supposedly large customers of [Nova LifeStyle] do not seem to recognize doing business with Nova LifeStyle (possibly for over $60 million since 2011).” Following this news, Nova’s stock price fell sharply on December 21, 2018.
The complaint filed in this class action alleges that, the Company made false and misleading statements to the market. Nova Lifestyle mischaracterized its supposed “strategic alliance” with Shanxi Wangqing, which the Company claimed had named it lead designer provider of all furnishings for a $460 million senior center in China. Nova Lifestyle inflated its reported revenues in 2016 and 2017 in conjunction with Shanxi Wangqing and Merlino Lewis LLP. Based on these facts, the Company’s public statements were materially false and misleading at all relevant times.
If you purchased shares of Nova Lifestyle, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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