According to the law firm press release, Velti engages in the provision of mobile marketing and advertising technology and solutions for brands, advertising agencies, mobile operators, and media companies primarily in Europe, the Americas, Asia, and Africa. The Complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Velti's statements and reported financial results. Specifically, the Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was having difficulties collecting certain receivables; (2) that certain of the Company's receivables were uncollectible; (3) that, as a result, the Company's revenues and receivables were overstated during the Class Period; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's statements and reported financial results were materially false and misleading at all relevant times.
On August 20, 2013, the Company reported its 2013 fiscal second quarter financial results and disclosed that the Company had made the decision to write-down approximately $111 million to its trade receivables and accrued contract receivables relating to its enterprise business. Moreover, the Company announced a "major restructuring" of its business. On this news, shares of Velti declined $0.66 per share, more than 66%, to close on August 21, 2013, at $0.34 per share, on heavy trading volume.
On October 21, 2013, Lead Plaintiff filed one of several competing motions in this District seeking consolidation of the Initial Related Actions.
On December 3, 2013, the Court entered an Order Granting Motion to Consolidate and Appoint Lead Plaintiff which appointed the aforementioned Lead Plaintiff and its choice of counsel, The Weiser Law Firm, P.C. (the “Weiser Firm”), as Lead Counsel.
On April 22, 2014, Lead Plaintiff filed a 130 page, consolidated complaint in the Action.
After the Complaint was filed, the Settling Parties continued their dialogue with the Mediator and ultimately agreed to the Partial Settlement outlined in the Stipulation filed with the Court on May 23, 2014.