NEW YORK, NY / ACCESSWIRE / July 31, 2019 / Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Verb Technology Company, Inc. ("Verb" or the "Company") (VERB) of the September 9, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Verb stock or options between January 3, 2018 and May 2, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/VERB. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Verb common stock between January 3, 2018 and May 2, 2018 (the "Class Period"). The case, Hartmann v. Verb Technology Company, Inc. et al., No. 19-cv-05896 was filed on July 9, 2019 and has been assigned to the Honorable George H. Wu.
On January 3, 2018, the Company announced a purported agreement with Oracle America, Inc. (herein, the “Oracle Agreement”) which received widespread attention to jointly develop Verb’s product. The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the true scope of the Oracle Agreement as the Company did not have a contract with Oracle to jointly develop and market the Company’s product and that as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times.
Following the rapid rise of the Company’s stock price due to the Oracle Agreement announcement, on April 23, 2018, the truth as to the Company’s relationship with Oracle began to emerge. The text of the Oracle Agreement revealed that there was no joint agreement for Oracle to use its substantial salesforce to market the Company’s product as previously touted by the Company and its CEO. Similarly, the text of the Oracle Agreement revealed that there was no joint development of the Company’s product, notifiCRM. Moreover, the text of the Oracle Agreement revealed the true nature of the relationship between Oracle and the Company: the Company had simply been provided with an application developer toolkit for its program to interface with Oracle NetSuite.
The Company and CEO Rory Cutaia had exceedingly overstated this relationship and omitted from all prior communications about the Oracle Agreement that the Company had to pay a fee to Oracle in order to participate in the partnership program and access nothing more than an application developer toolkit. The Oracle Agreement revealed that the Company had made misleading statements pertaining to Oracle’s acts upon completion of the product, despite such statements having been explicitly prohibited by the Oracle Agreement.
On April 30, 2018, Cutaia issued a video to Company shareholders assuring investors that a joint press release would be coming from Oracle "within days" though there were a number of complicating factors. No joint press release was ever issued and the market increasingly questioned the relationship between the two companies.
On this news, Verb's share price fell from $2.70 per share on April 19, 2018 to a closing price of $1.54 on April 30, 2018: a $1.16 or a 42.96% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Verb's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE: Faruqi & Faruqi, LLP
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