RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Zoompass Holdings, Inc. (OTC: ZPAS) (“Zoompass” or the “Company”) securities between April 24, 2017 and May 24, 2017, inclusive (the “Class Period”).
Zoompass shareholders may, no later than July 31, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Zoompass 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.
Zoompass develops a mobile money platform that enables brands to transform their financial interactions with customers. Its platform facilitates employee reward incentives, compensation, customer rewards and promotions, and managed services, as well as enables businesses to visualize their financial transactions with customers, employers, and suppliers.
On May 9, 2017 Zoompass disclosed that it had been “made aware of and requested by the OTC Markets Group, Inc. to comment on recent trading and potential promotional activity.” Following this announcement, shares fell $1.67 or over 45% over three trading sessions.
On May 25, 2017, an article was published on SeekingAlpha.com alleging that Zoompass had erroneously denied its involvement with a scheme designed to promote Zoompass’ stock; and that Zoompass had purposely kept hidden the fact that the Company’s CEO was involved in a pump-and-dump scheme. On this news, shares of Zoompass fell over 23% to close at $2.25 per share on May 25, 2017.
The complaint filed in this class action lawsuit alleges that throughout the Class Period, Defendants made materially false and misleading statements, and failed to disclose that: (1) Zoompass unlawfully engaged in a scheme to promote its stock; (2) discovery of the foregoing conduct would subject Zoompass to heightened regulatory scrutiny and potential criminal sanctions; and (3) that as a result, Zoompass’ public statements were materially false and misleading at all relevant times.
If you are a member of the class, you may, no later than July 31, 2017, 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.