SAN DIEGO & WEST HENRIETTA, N.Y.--(BUSINESS WIRE)--
Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Vuzix Corporation (VUZI) have filed a shareholder derivative complaint against the company's officers and directors for breaches of their fiduciary duties from November 3, 2016 to the present. Vuzix designs, manufactures, markets, and sells wearable display devices in the United States and internationally.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/vuzix-corp-nov-2018/
Vuzix Accused of Using Illegal Stock Promotion Tactics
According to the complaint, Vuzix conducted a secondary offering ("SPO") on January 26, 2018, for $10 per share, raising approximately $28.4 million to be used for general corporate purposes, including expanding Vuzix's product lines. Prior to the SPO, Vuzix heavily touted its Vuzix Blade Smart Glasses ("The Blade"), noting that the device received four innovation awards at the Consumer Electronics Show in January 2018. In March 2018, a report alleged that Vuzix illegally used stock promotion tactics to boost Vuzix's share price prior to the SPO. The report called The Blade "little more than a low tech mock-up which serves as a prop for journalists to conduct sham reviews." On this news, Vuzix's stock fell more than 22% to close at $5.95 per share on March 21, 2018.
Vuzix Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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