A CLASS action suit was filed yesterday against MOL Global Inc, the first Internet firm from Southeast Asia listed on Nasdaq, by American legal firm Tripp Levy PLLC.
In a statement yesterday, the legal firm said the New York suit was filed on behalf of purchasers of MOL Global stocks between October 9 and November 20.
Tripp claimed that shareholders would have suffered a loss of at least US$100,000 (RM335,000) from MOL Global common stock investments and the suit was filed to recover the losses.
Tripp claimed that MOL Global had overstated its revenue and profit. It also claimed that MOL Global’s financial statements contained false and misleading material statement and the company’s actual business could not sustain the growth trends described in the offering documents.
It was reported that another legal firm, Morgan & Morgan, had filed a similar suit against MOL Global, while at least seven other United States law firms had already announced probes that could lead to potential claims on behalf of investors of MOL Global.
MOL Global’s trading on Nasdaq was suspended on Tuesday after the company failed to provide additional information on its latest announcements.
The online payment company failed to release its third-quarter 2014 financial results on November 21, which have been deferred to December 3.
Meanwhile, MOL Global announced on November 20 that its chief financial officer had tendered his resignation.
The company made a poor debut on the Nasdaq on October 9, opening lower at US$10.75 and declining to close at US$8.14.
Its initial public offering of 13.5 million depository shares was priced at the lower end of the expected range at US$12.50 per share.