Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Liquidity Services, Inc. (NASDAQGS: LQDT) breached their fiduciary duties by issuing materially misleading business information to the investing public. Liquidity Services operates online auction marketplaces for buyers and sellers of surplus, salvage, and scrap assets in the United States.

View this press release on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/liquidity-services-inc

Liquidity Services Misrepresented Its Financial Condition

On March 31, 2016, the U.S. District Court for the District of Columbia upheld securities fraud class action claims against Liquidity Services and certain of its officers and directors. The lawsuit alleges that from February 1, 2012 through May 7, 2014, Liquidity Services officials made false statements regarding the purported strength of the company's retail and commercial capital assets divisions, causing the stock price to be artificially inflated. Further, the lawsuit alleges that Liquidity Services' Chief Executive Officer sold $68.2 million of company stock at artificially inflated prices. Based on these allegations, the Court found there was a "strong and cogent inference of scienter" of an intent to defraud.

Liquidity Services Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.

Attorney Advertising. Past results do not guarantee a similar outcome.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160517006580/en/

Copyright Business Wire 2010