According to the law firm press release, Liquid Holdings is a cloud-based technology and managed services provider to the global hedge fund and active trading markets. Liquid's solutions are delivered through the cloud in a SaaS model.

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that : (1) that the Company was overstating its ability to generate customers; (2) that the Company’s business model was unsustainable; (3) that the financial condition of the Company’s main and largest customer (an investment entity known as QuantX Management, LLP (“QuantX”)) was deteriorating; (4) that, as a result, the Company’s financial results and operating metrics were overstated; (5) that, as such, the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (6) that the Company lacked adequate internal controls; (7) and that, as a result of the foregoing, the Company’s financial statements and Defendants’ statements about Liquid Holding’s business, operations, and prospects, were materially false and misleading at all relevant times. Upon disclosure of these issues the Company’s securities declined sharply in value, thereby damaging investors.

Plaintiffs filed an amended complaint on July 22, 2016.

A second amended Complaint was filed on July 27, 2017. A third amended Complaint was filed on May 10, 2018. A corrected third amended Complaint was filed on May 11. On May 31, Defendants filed a Motion to Dismiss the third amended Complaint. On December 31, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.

On October 29, 2019, Lead Plaintiffs, on behalf of themselves and all other Settlement Class members, entered into a Stipulation of Settlement with three of the Individual Defendants. On October 31, the Court granted preliminary approval of the Settlement.