NEW YORK, Sept. 12, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in RiT Technologies Ltd. (“RiT” or the “Company”) (OTC:RITT) of the September 26, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased RiT securities between March 3, 2015 and July 1, 2016 (the “Class Period”). The case, PADGETT v. RIT TECHNOLOGIES LTD. et al , No. 2:16-cv-04579 was filed on July 28, 2016, and has been assigned to Judge Kevin Charles McNulty.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failed to disclose that: (1) RiT CIS was RiT Technologies’ major distributor in Russia and the CIS region; (2) RiT CIS was vital to the viability of RiT Technologies; and (3) as a result, RiT Technologies’ public statements were materially false and misleading at all relevant times.
Specifically, on February 11, 2016, the Company issued a press release revealing that RiT CIS was RiT’s major distributor in Russia and the CIS region and was delaying payments to the Company thus adversely impacting RiT’s current cash flow.
After this announcement, RiT’s share price fell from $1.19 per share on February 10, 2016 to a closing price of $0.59 on February 11, 2016—a $0.60 or a 50.42% drop.
Additionally, on April 20, 2016, the Company issued a press release announcing that the collection progress of its Russian distributor’s overdue debts was significantly lower than planned, and that the CFO of RiT had resigned effective immediately.
On this news, RiT’s share price fell from $0.69 per share on April 19, 2016 to a closing price of $0.37 on April 20, 2016—a $0.32 or a 46.38% drop.
The lawsuit also alleges several other news disclosures such as: 1) on May 10, 2016, RiT announced that it had made no progress in the collection of the overdue debts of RiT CIS; 2) on June 3, 2016, RiT announced the resignation of the President and CEO of the Company; 3) on June 28, 2016, RiT announced that its request for continued listed on the NASDAQ Capital Market was denied, that trading of its securities will be suspended by NASDAQ on July 1, 2016 and thereafter be removed from listing on the NASDAQ; 4) and lastly on July 5, 2016, RiT announced that a group of the Company’s employees had filed petitions with the Tel Aviv District Court to liquidate the Company.
As a result of these announcements, RiT’s share price fell from $0.34 per share on May 9, 2016 to a closing price of $0.09 on July 5, 2016—a $0.25 or a 73.53% drop.
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Take Action
If you invested in RiT common stock or options between March 3, 2015 and July 1, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/RITT . You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com . Faruqi & Faruqi, LLP also encourages anyone with information regarding RiT’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( www.faruqilaw.com ). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. rgonnello@faruqilaw.com Telephone: (877) 247-4292 or (212) 983-9330
