The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Akazoo S.A. (“Akazoo” or the “Company”) (NASDAQ: SONG) securities during the period from September 11, 2019 through April 20, 2020 (the “Class Period”). Investors have until June 23, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Akazoo overstated its revenue, profits, and cash holdings; (ii) Akazoo holds significantly lesser music distribution rights than it has stated and implied; (iii) as opposed to Akazoo’s continued statements, it does not operate in 25 countries; (iv) Akazoo has a significantly smaller user base than its states; and (v) Akazoo has closed its headquarters and other offices around the world.
On April 20, 2020, Quintessential Capital Management release an equity report alleging that Akazoo misled investors and failed to disclose pertinent information, including: (i) Akazoo overstated its users, subscribers, revenue, and profit; (ii) Akazoo overstated the size of the Company and its services; (iii) Akazoo overstated where the Company’s service is actually available; and (iv) Akazoo is and has been closing offices and losing employees.
On this news, Akazoo shares fell $0.53 per share over the next two trading days, or 21.0%, to close at $1.99 on April 21, 2020.
If you acquired Akazoo securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.