NEW YORK, Aug. 29, 2018 /CNW/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Vuzix Corporation ("Vuzix" or the "Company") (NASDAQ: VUZI) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 18-cv-06793. This is a class action on behalf of persons and entities, other than Defendants, that: (a) acquired Vuzix securities pursuant and/or traceable to the Company's false and/or misleading registration statement and prospectus (collectively, the "Registration Statement") issued in connection with the Company's January 2018 secondary public offering ("SPO" or the "Offering"); and/or (b) acquired Vuzix securities between November 9, 2017, and March 20, 2018, inclusive (the "Class Period"). Plaintiff pursues claims against the Defendants, under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Vuzix securities between November 9, 2017, and March 20, 2018, both dates inclusive, you have until September 24, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Vuzix purportedly designs, manufactures, markets and sells devices that are worn like eyeglasses and feature built-in video screens. The Company's products purportedly enable users to view video and digital content, such as movies, websites and video games.
On January 26, 2018, the Company filed its SPO prospectus on Form 424B5 with the SEC, which forms part of the SPO Registration Statement. In the SPO, the Company sold 3,000,000 shares of common stock at a price of $10.00 per share. The Company received proceeds of approximately $28.4 million from the SPO, net of underwriting discounts and commissions. The proceeds from the SPO were purportedly to be used to for general corporate purposes, including expanding Vuzix's product lines, and for general working capital purposes.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose that: (i) Vuzix used unlawful stock promotion tactics to boost the Company's stock price; (ii) Vuzix used misleading stock promotion tactics to raise nearly $30 million at an all-time high share price; and (iii) as a result of the foregoing, Defendants' statements in the Registration Statement regarding Vuzix's business, operations, and prospects, were materially false and/or misleading.
On March 16, 2018, MOX Reports published a report alleging that Vuzix had used undisclosed stock promotion tactics involving mainstream media outlets to artificially inflate its share price.
On this news, the Company's share price fell $1.70 per share, or more than 22%, on heavy trading volume, over the course of three trading sessions, to close on March 21, 2018 at $5.95 per share.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 9980
SOURCE Pomerantz LLP