Robbins LLP: Zoompass Holdings, Inc. (ZPAS) Misled Shareholders According to Class Action
Robbins LLP announces that a class action complaint was filed against Zoompass Holdings, Inc. (Other OTC: ZPAS) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of Zoompass securities between April 24, 2017 and May 24, 2017 for alleged violations of the Securities Exchange Act of 1934 by Zoompass’ officers and directors. Zoompass develops a mobile money platform that enables brands to transform their financial interactions with customers.
Zoompass Chief Executive Officer Accused of Orchestrating Pump-and-Dump Scheme
According to the complaint, Zoompass represented in its filings with the U.S. Securities and Exchange Commission that the company “did not have any promoters at any time during the past five fiscal years.” Zoompass’ share price had increased significantly in previous months; yet, the company’s press releases lacked justification for the sharp surge in growth. The complaint alleges that the company’s Chief Executive Officer (“CEO”) was deeply involved in a pump-and-dump scheme fueled by a nearly $2 million stock promotion campaign, which was the true reason for the rise in the company’s stock price. On May 9, 2017, Zoompass disclosed that the OTC Markets Group, Inc. requested Zoompass to “comment on recent trading and potential promotional activity.” On this news, Zoompass’ stock fell $1.67 per share, or over 45%. Seeking Alpha released an article on May 25, 2017, suggesting that Zoompass’ CEO was directing another fraudulent scheme in a similarly ill-fated company. On this news, shares of Zoompass fell over $0.70 per share, or over 23%, to close at $2.25 per share on May 25, 2017.
Zoompass Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsllp.com, or you can complete the form below and we will contact you directly.