Robbins Arroyo LLP: Xoom Corporation (XOOM) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Xoom Corporation (NASDAQGS: XOOM) has filed a federal securities fraud class action complaint in the Superior Court of the State of California for the County of San Franscisco. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 in connection with the company’s initial public offering (“IPO”) on February 15, 2013. Xoom provides digital consumer-to-consumer online money transfers services.
Xoom Misrepresents Its Business Practices
Since the company’s IPO, Xoom stock has dropped from a class period high of $35.27 in July 2013 to $15.13 per share as of February 12, 2015, representing a 57% decrease. According to a recently filed class action, on January 5, 2015, Xoom announced that $30.8 million in corporate cash was illegally transferred to overseas accounts and that Matt Hibbard had resigned as Chief Financial Officer. The complaint states that these actions were the result of seriously deficient internal controls at the company, which the company failed to disclose in its registration statement and prospectus in connection with its IPO.
Xoom 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.