Bernstein Liebhard LLP Announces Filing of a Class Action Against Zoo Entertainment, Inc.
August 15, 2011
Bernstein Liebhard LLP today announced that a lawsuit has been filed in the United States District Court for the Southern District of Ohio on behalf of a class (the “Class”) of investors who purchased Zoo Entertainment, Inc. (“Zoo” or the “Company”) (NASDAQ: ZOOG) common stock between the period of May 17, 2010 and April 15, 2011 (the “Class Period”).
Zoo and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants, notwithstanding their knowledge of the Company’s material weaknesses in its internal controls, caused the Company to report financial results that overstated shareholder equity by over $250,000 and inflated both net income and diluted net income per common share by 660% and 900%, respectively.
On April 15, 2011, the Company filed with the SEC a Current Report on Form 8-K, disclosing that it had erred “in recording certain transactions in the Company’s previously filed unaudited consolidated financial statements” for the first three quarters of 2010, ended March 31, 2010, June 30, 2010 and September 30, 2010. As a result, the Company warned that investors should no longer rely on those financial statements. On the announcement of this news, the price of Zoo common stock plummeted 34.3% from an April 15, 2010 close of $4.40 per share to an April 18, 2010 close of $2.89 on unusually high volume of 1.045 million shares traded.
Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired shares of Zoo during the Class Period. If you purchased or otherwise acquired Zoo shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than September 23, 2011.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard has pursued hundreds of securities, consumer, and antitrust cases and recovered almost $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last eight years.