NEW YORK, March 12, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Xoom Corporation ("Xoom" or the "Company") (Nasdaq:XOOM) and certain of its officers. The class action, filed in Superior Court of the State of California, for the County of San Francisco, and docketed under CGC-15-544655, is on behalf of a class of all persons other than defendants who purchased the common stock of Xoom pursuant and/or traceable to the Company's Registration Statement and Prospectus, declared effective by the SEC on February 14, 2013, issued in connection with the Company's Initial Public Offering (the "IPO"), including all those who purchased Xoom stock after February 14, 2013. This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Act of 1933 (the "Securities Act").
If you are a shareholder who purchased Xoom securities during the Class Period, you have until April 8, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Xoom provides digital consumer-to-consumer online money transfers services worldwide. The company offers money transfer services over the Internet, through a mobile device on its Website at xoom.com, and through its mobile application, the Xoom App.
The Complaint alleges that throughout the Class period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, the Company failed to disclose that the registration statement and prospectus contained inaccurate statements of material fact and/or omitted material facts because it failed to disclose that Xoom's internal controls were so seriously deficient that tens of millions of dollars of Xoom's corporate cash could be fraudulently transferred and stolen without the Company's knowledge.
On October 28, 2014, the Company announced Ryno Blignaut's resignation as Chief Financial Officer, effective December 1, 2014. Matt Hibbard, the Company's current Vice President of Finance, was named as the Company's new Chief Financial Officer.
On this news, shares of Xoom fell $2.45 per share, or more than 12.60%, to $17.00 per share in after-hours trading on October 28, 2014.
On January 5, 2015, Xoom announced that a criminal fraud had taken place at the Company, whereby $30.8 million in corporate cash was illegally transferred to overseas accounts. Also, on January 5, 2015, Xoom announced that Matt Hibbard, who replaced Blignaut as CFO on December 2, 2014, had abruptly resigned from his position.
On this adverse news, shares of Xoom fell $0.27 per share, or more than 1.6%, in intraday trading on January 6, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.