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Archives for October 2013

NQ Mobile, Inc.

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Haeggquist & Eck, LLP has commenced an investigation into claims on behalf of purchasers of  NQ Mobile Inc. (NYSE: NQ) (“NQ or the “Company”) securities concerning potential violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 by Company offices and directors during the period between May 5, 2011, through May 2, 2013 (the “Class Period.”)

Zeldes Haeggquist & Eck’s investigation concerns whether NQ issued materially false and misleading statements regarding the Company’s business and financial prospects during the Class Period and in connection with the Company’s May 5, 2011, initial public offering (“IPO”).

Founded in 2005 and headquartered in Beijing, PRC, NQ provides various mobile Internet services.  The company was formerly known as NetQin Mobile Inc. and changed its name to NQ Mobile Inc. in April 2012.

On May 5, 2011, NQ conducted its IPO of American Depositary Shares (NYSE: NQ).   The shares were priced at $11.50 per share.  Following the IPO, and during the Class Period, NQ share prices increased significantly, climbing to nearly $25 per share in October 2013.

Then, on October 24, 2013, equity research firm Muddy Waters LLC initiated coverage on NQ with a “Strong Sell” rating and a projected target price of less than $1.  Among other things, Muddy Waters’ research report states: (i) at least 72% of NQ’s reported $32.2 million in 2012 China security software revenue is fraudulent, NQ’s real security revenue was $2.5 million to $7.7 million; (ii) NQ’s largest customer is actually an empty shell company controlled by NQ; (iii) NQ’s real market share in China is only about 1.4%, versus the approximately 55% it reports; (iv) NQ’s international revenues are wildly overstated; and (v) the vast majority of the $127.9 million cash and investments NQ reported having as of December 31, 2012, is not actually in the Company’s accounts.

Upon the release of this information, on October 24, 2013, NQ shares declined 47% to $12.09 per share from $22.88 per share, on unusually heavy volume of 29.3 million shares traded.

To schedule your free initial consultation, contact us online or call (619) 342-8000 today!

Class Action Certified Against Sony For Defective Laptop Touchpads

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On September 25, 2013, the United States District Court for the Southern District of California issued an order granting class certification to California and New Jersey residents who allege Sony Electronics, Inc. knowingly marketed and sold laptops containing defective touchpad components.  A redacted copy of the order can be found here.  “This is a great decision for consumers whose complaints about their trackpads on their Sony VAIO laptops malfunctioning have long fallen on (Sony’s) deaf ears,” said Helen Zeldes, of Zeldes, Haeggquist & Eck., class counsel for the lead plaintiffs in the class action lawsuit against Sony.   “We look forward to the next chapter in this litigation.”

The Court found “that both named plaintiffs and their counsel will provide adequate representation on behalf of the class.”  In addition, referring to Sony’s attempt to defeat certification, the Court found, in part, that “three cases Sony relies on” are “materially different than Sony’s representation” and its assertion is “patently incorrect.”  Simply put, Sony “has failed to explain how this case will be unmanageable beyond cursory assertions.  In contrast, Plaintiffs argue two sub-classes sufficiently manage the different States’ laws.”  “Each sub-class is represented by an appropriate named plaintiff and the respective state law will be applied to that sub-class.  Under these circumstances, the Court finds the case easily manageable as the state law is clear cut.”

Ultimately, the central question regarding the laptops at issue is whether there is a design defect in the touchpad.  “Resolving this issue, one way or another, for hundreds of thousands of VAIO computers sold since 2006, adds great economy of scale favoring class action treatment.”  “The cost of repairing or returning a defective laptop is too small to incentivize class members to litigate claims individually.”

To schedule your free initial consultation, contact us online or call (619) 342-8000 today!

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