NEW YORK, Jan. 12, 2018 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed against Liberty Tax, Inc. ("Liberty Tax" or the "Company") (NASDAQ:TAX) and certain of its officers, on behalf of shareholders who purchased Liberty Tax securities between June 29, 2016 and December 11, 2017, both dates inclusive ("Class Period"). The case has been filed in the United States District Court for the Eastern District of New York.
Investors who have incurred losses in Liberty Tax, Inc. are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have incurred losses in the shares of Liberty Tax, Inc. and would like to assist with the litigation process as a lead plaintiff, you may, no later than February 13, 2018, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in Liberty Tax, Inc.
The complaint alleges that Defendants made false and/or misleading statements and failed to disclose that:
- Liberty Tax's former CEO John T. Hewitt created an inappropriate tone at the top of the organization;
- the inappropriate tone at the top led to ineffective entity level controls over the organization;
- and; consequently, defendants' statements about Liberty Tax's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On September 6, 2017, Liberty Tax announced that its founder and Chief Executive Officer (“CEO”) John T. Hewitt had been terminated. On November 7, 2017, Liberty Tax announced the resignation of Kathleen Donovan, its Vice President and Chief Financial Officer. On this news, shares of Liberty Tax fell $2.25 per share or over 16% from its previous closing price to close at $11.00 per share on November 8, 2017.
Subsequently, on December 11, 2017, Liberty Tax filed a Form 8-K with the SEC, reporting that KPMG LLP resigned as its independent registered public accounting firm and that Liberty Tax will delay the filing of its quarterly report on Form 10-Q for the quarter ended October 31, 2017. KPMG reportedly expressed concerns regarding internal controls over financial reporting as related to the integrity and tone at the top set by Liberty Tax’s former CEO John T. Hewitt.
Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
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Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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