RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Vuzix Corporation (“Vuzix” or the “Company”) (NASDAQ: VUZI) pursuant and/or traceable to the Company’s registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s January 2018 secondary public offering (“SPO” or the “Offering”); and/or (b) acquired Vuzix securities between November 9, 2017, and March 20, 2018, inclusive (the “Class Period”).
Vuzix shareholders may, no later than September 24, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Vuzix and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
Vuzix designs, manufactures, markets and sells devices that are worn like eyeglasses and feature built-in video screens. The Company’s products purportedly enable users to view video and digital content, such as movies, websites and video games.
On January 26, 2018, the Company filed its SPO prospectus on Form 424B5 with the SEC, which forms part of the SPO Registration Statement. In the SPO, the Company sold 3,000,000 shares of common stock at a price of $10.00 per share. The Company received proceeds of approximately $28.4 million from the SPO, net of underwriting discounts and commissions. The proceeds from the SPO were purportedly to be used to for general corporate purposes, including expanding Vuzix’s product lines, and for general working capital purposes.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (i) Vuzix used unlawful stock promotion tactics to boost the Company’s stock price; (ii) Vuzix used misleading stock promotion tactics to raise nearly $30 million at an all-time high share price; and (iii) as a result of the foregoing, Defendants’ statements in the Registration Statement regarding Vuzix’s business, operations, and prospects, were materially false and/or misleading.
On March 16, 2018, MOX Reports published a report alleging that Vuzix had used undisclosed stock promotion tactics involving mainstream media outlets to artificially inflate its share price.
On this news, the Company’s share price fell $1.70 per share, or more than 22%, on heavy trading volume, over the course of three trading sessions, to close on March 21, 2018 at $5.95 per share.
If you are a member of the class, you may, no later than September 24, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.