Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court, Southern District of New York, on behalf of all persons who purchased or otherwise acquired any NYSE-traded securities of NQ Mobile, Inc. (“NQ” or the “Company”) (NYSE:NQ) between May 5, 2011 and October 24, 2013, inclusive (the “Class Period”), against the Company and certain of the Company’s officers and directors (“Defendants”). The lawsuit also includes those investors who purchased NQ American Depositary Receipts (“ADRs”) in its initial public offering commencing on May 5, 2011 pursuant to NQ’s registration Statement and Prospectus. The action alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 [15 U.S.C. §§ 77k, 77l(a)(2) and 77o], Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5].
The litigation is styled Ghauri v. NQ Mobile, Inc., et al., C.A. No. 13-cv-7637. A copy of the Complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
NQ purports to provide security solutions for the mobile phone market. As alleged in the Complaint, during the Class Period, NQ released statements regarding, among other things, its financial performance and product efficacy which contained materially false information or omitted information necessary to make those statements not misleading. On October 24, 2013, the short-selling investment firm Muddy Waters LLC issued a detailed 81-page report entitled “NQ Mobile: China Fraud 2.0” regarding NQ’s accounting practices, customer base and policies. Among the allegations raised in the Muddy Waters Report, were that the Company had a Chinese market share of only 1.5%, rather than the 55% share the Company publicly claimed, and that NQ had minimal, if any, cash reserves.