According to the law firm press release, it is alleged that throughout the Class Period, Liquidity falsely represented the financial condition of the Company in issuing false and misleading statements concerning the Company's current and future profitability, its growth initiatives including the integration and performance of its acquisitions, the seriousness of the competition in the industry, and the adverse effects of its declining Department of Defense business and the offsetting gains in its commercial and local and state government segments. At all relevant times, Defendants wrongfully portrayed Liquidity as a profitable, growing company with substantial potential for further growth, and falsely reassured investors that any struggles by the Company were merely temporary side effects to its lucrative growth initiative. These material misrepresentations and omissions artificially inflated the Company's stock and allowed certain Company insiders to receive a windfall from selling the Company's stock at inflated prices.
On October 14, 2014, the Court issued an Order appointing lead plaintiffs and approving lead counsel. Lead plaintiffs filed an amended complaint on December 15.