NEW YORK, Jan. 14, 2019 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Nova Lifestyle, Inc. (“Nova Lifestyle” or the “Company”)(NASDAQ:NVFY) of the February 26, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Nova Lifestyle stock or options between December 3, 2015 and December 20, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/NVFY. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Nova Lifestyle securities between December 3, 2015 and December 20, 2018 (the “Class Period”). The case, George Barney v. Nova Lifestyle, Inc. et al, No. 18-cv-10725 was filed on December 28, 2018, and has been assigned to Judge Andre Birotte Jr.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Nova Lifestyle overstated its purported “strategic alliance” with Shanxi Wanqing to operate as lead designer and manufacturer for all furnishings in Shanxi Wanqing’s planned $460 million senior care center in China; (2) Nova Lifestyle inflated its reported sales in 2016 and 2017 with Shanxi Wanqing and Merlino Lewis LLP; and (3) consequently, Nova Lifestyle’s public statements were materially false and misleading at all relevant times.
On December 21, 2018, Andri Capital issued a report on Seeking Alpha stating Nova Lifestyle’s revenues in 2016 and 2017 were overstated because the Company booked sales to a dissolved and nonexistent company. The report further stated that Nova Lifestyle’s purported strategic alliance with Shanxi Wanqing was meant to deceive investors as Shanxi Wanqing was a sham company.
On this news, Nova Lifestyle’s share price fell from $0.77 per share on December 20, 2018 to a closing price of $0.46 on December 21, 2018: a $0.31 or a 40.26% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Nova Lifestyle’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330