Verb Technology Company, Inc. (VERB) Accused of Misrepresenting Oracle Agreement
According to the complaint, filed for alleged violations of the Securities Exchange Act of 1934 between January 3, 2018 and May 2, 2018, Verb touted a purported agreement with Oracle America, Inc. in its Form 8-K filing announcement. Verb stated that the development of the application and its marketing would be undertaken jointly by both it and Oracle, providing access to Oracle’s network of approximately 2,000 sales reps. This news inflated the stock price by an astonishing 2000%, from $0.12 to $2.70 in April 2018. After the steep increase in its stock price, Verb disclosed the true terms of the Oracle agreement in its filing of a Form 8-K. The form revealed that previous statements regarding the agreement were materially false and misleading as Verb did not actually have a contract to jointly develop and market the application with Oracle, as was continuously touted by Verb. Rather, Oracle had only agreed to provide Verb with an application developer toolkit to interface with Oracle NetSuite. On this news, the stock price experienced a precipitous decline, closing in May 2018 at $1.08, a 60% decrease.
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