Longfin Corp. (LFIN) Accused of Issuing Unregistered Securities
According to the complaint, Longfin Corp. (LFIN) inflated the trading price of Class A Shares by making materially false and misleading statements concerning the identities and qualifications of Longfin’s board members, material weaknesses in the company’s internal controls over financial reporting and operations, and its profitability. These misstatements were designed to and caused the public to purchase unregistered securities, which surged 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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