Lawsuit: Live Ventures Publishes Lies to Raise Stock Prices

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A securities lawsuit has been filed against Live Ventures Incorporated and two of its chief officers alleging that they published false and misleading information about the company’s financial prospects to artificially inflate stock prices. The suit claims the company issued a press release on November 7, 2016, informing the public that it had acquired Vintage Stock, Inc. and announcing its projected sales. The complaint argues that, following this disclosure, Live Ventures paid individuals to publish articles urging investors to buy its stock, and that the stock price rose from $11.58 per share to $27.68 per share between November and December 2016. The suit then claims that an article published on SeekingAlpha.com reported that the company had released a false earnings-per-share number and had paid people to write “favorable” articles about it. This news allegedly caused stock prices to drop, and continue to drop, almost 48%.

The suit seeks to cover people who purchased Live securities between November 7, 2016 and January 6, 2017.