Robbins Arroyo LLP: IDI, Inc. (IDI) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a securities fraud class action complaint was filed in the U.S. District Court for the Southern District of Florida. The complaint alleges that officers and directors of IDI, Inc. (NYSE MKT: IDI) violated the Securities Exchange Act of 1934 between April 30, 2015 and July 21, 2015, by making materially false and misleading statements about IDI’s business prospects. IDI, Inc., through its subsidiaries, operates as an information solutions provider focused on the data-fusion market.
IDI, Inc. Fails to Disclose Information About Pending Lawsuits
According to the complaint, IDI officials failed to disclose adverse information concerning Michael Brauser, who was elected to IDI’s board on June 2, 2015, and became Executive Chairman of the company on June 16, 2015. On April 30, 2015, IDI filed a proxy statement with the U.S. Securities Exchange Commission in connection with its annual shareholders meeting to elect members of its Board of Directors. The proxy statement, which included biographical information about Brauser as a director nominee, failed to disclose that Brauser was named as a defendant in various civil fraud litigation, was co-owner of a telecommunications firm that filed for bankruptcy, and was sued in an adversary proceeding related to that firm.
The complaint further alleges that the disclosure of the company’s legal proceedings in its 2015 Form 10-Q for the quarterly period ended March 31, 2015, was incomplete and misleading. The 10-Q mentioned that the company was being sued by TransUnion Risk and Alternative Data Solutions, Inc., but failed to disclose that an adverse ruling could have an immediate near-term impact on the company’s financial position, results of operations, and liquidity.
On July 21, 2015, Seekingalpha.com published an article detailing Brauser’s involvement in multiple lawsuits and stating that IDI’s TransUnion lawsuit could render IDI’s stock worthless. The same day, the company’s stock fell $5.26 per share, or over 46%, to close at $6.16 per share.
IDI, Inc. Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.