NEW YORK, April 11, 2018 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired IZEA, Inc. (NASDAQ:IZEA) (“IZEA” or “Company”) securities between May 25, 2015 and April 3, 2018 (the “Class Period”), inclusive.
Investors who have incurred losses in shares of IZEA, Inc., you may contact the firm at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the firm on our website, www.whafh.com.
The filed complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that:
- IZEA was misreporting revenue from the Company’s Content Workflow services as gross amounts billed to marketers instead of on a net transaction basis;
- the amount IZEA previously reported as gross profit on Content Workflow should be the amount reported as revenue;
- IZEA lacked adequate internal controls; and
- as a result, Defendants’ public statements were materially false and misleading at all relevant times.
On February 26, 2018, IZEA announced that in connection with the preparation of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, the company’s Audit Committee of the Board of Directors (the “Audit Committee”) determined that there was an error in accounting for revenue and cost of sales related to the self-service Content Workflow portion of the company’s revenue.
As a result of additional review procedures necessitated by the accounting adjustments, the company needed additional time to file its Annual Report on Form 10-K for the year ended December 31, 2017 and plans to file a request for an extension on Form 12b-25 with the Securities and Exchange Commission.
Following this news, shares of IZEA fell $0.66 per share, or over 18%, on April 2, 2018, to close at $3.00 per share. The stock price then continued to fall the following trading day, and dropped another $0.58 per share, or over 19%, to close at $2.42 per share on April 3, 2018.
Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
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Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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