Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of FAB Universal Corporation (“FAB” or the “Company”) (NYSE MKT:FU) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by the Company concerning FAB’s business, operations and financial performance. FAB engages in the distribution of digital entertainment products and services worldwide. The investigation is related to allegations in a report issued November 14, 2013, by Alfredlittle.com, alleging that, among other things, “FAB’s business in China is a tiny fraction of what it claims in its SEC filings.” The report further alleges that:
- Contrary to FAB’s anti-piracy claims, the Company’s “Intelligent Media Kiosks” are stocked with “very obviously pirated U.S. movies.”
- FAB’s kiosk manufacturers acknowledged that they historically supplied to FAB only 1,600-1,700 kiosks – approximately 10% of the 16,820 units FAB claims to have deployed.
- FAB has only approximately 1000 kiosks in Beijing, compared to a purported 3,954 kiosks disclosed in its June 1, 2012, proxy statement.