NEW YORK, July 17, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the District of Columbia on behalf of all persons who purchased or otherwise acquired the securities of Liquidity Services, Inc. ("Liquidity Services" or the "Company") (Nasdaq:LQDT) during the period between February 1, 2012 through May 7, 2014, inclusive (the "Class Period") (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that throughout the Class Period, Liquidity Services falsely represented the financial condition of the Company in issuing false and misleading statements concerning the Company's current and future profitability, its growth initiatives including the integration and performance of its acquisitions, the seriousness of the competition in the industry, and the adverse effects of its declining Department of Defense business and the offsetting gains in its commercial and local and state government segments. The Complaint alleges that at all relevant times, Defendants wrongfully portrayed Liquidity Services as a profitable, growing company with substantial potential for further growth, and falsely reassured investors that any struggles by the Company were merely temporary side effects to its lucrative growth initiative. The Complaint alleges that these material misrepresentations and omissions artificially inflated the Company's stock and allowed certain Company insiders to receive a windfall from selling the Company's stock at inflated prices.
If you wish to serve as lead plaintiff, you must move the Court no later than September 12, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at email@example.com or firstname.lastname@example.org.
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Source: Gainey McKenna & Egleston