Longfin Corp. (LFIN) Accused of Making False Statements in its SEC Filings

According to the complaint, Longfin inflated the trading price of Class A Shares by making materially false and misleading statements concerning: (i) the identities and qualifications of Longfin's board members, officers, and key employees; (ii) material weaknesses in the company's internal controls over financial reporting and operations; (iii) the company's profitability; and (iv) key facts relating to the company's acquisition of Ziddu.com from Meridian Enterprise Pte. Ltd. These misstatements caused Longfin's Class A Stock to surge to $142.82 on December 18, 2017.

On March 26, 2018, Citron Research accused Longfin of inaccuracies in its financial reporting and fraud. That same day, Russell announced that Longfin would be removed from its global indices after market close on March 28, 2018. Then, on Friday, April 6, 2018, the SEC halted trading of the stock and obtained an emergency freeze of $27 million in trading profits involving the CEO and others to prevent the profits from being transferred out of the country. On May 24, 2018, the company's Class A Stock was officially delisted from NASDAQ and began trading on the OTC, with an opening price of $5.05. The stock is now valued at under $2.00 per share.

Longfin Corp. (LFIN) Shareholders Have Legal Options

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