On June 21, 2018, the United States District Court for the District of Columbia preliminarily approved a $17 million settlement in Howard v. Liquidity Services, Inc., No. 14-cv-1183 (D.D.C.). SRK has been litigating the action as Co-Lead Counsel since 2014.
Liquidity Services, Inc. (“Liquidity Services” or the “Company”) operates an online auction marketplace that provides its customers with a platform to buy and sell wholesale, surplus, and salvage goods. As alleged in the complaint, between February 1, 2012 and May 7, 2014 (the “Class Period”), Liquidity Services and certain of its executive officers made materially false and misleading statements related to the Company’s profitability, the integration of recent acquisitions, and the adverse effects of a decline in business with one of its major clients, the U.S. Department of Defense. Notwithstanding the defendants’ false statements, Liquidity Services’ margins and revenues were deteriorating and it was having serious problems integrating its acquisitions.
The settlement follows a series of hard-won successes by SRK and its co-counsel. First, on March 31, 2016, Chief Judge Beryl A. Howell denied in part the defendants’ motion to dismiss, sustaining claims regarding alleged misrepresentations of the financial performance of Liquidity Services’ retail division. Then, on December 21, 2016, the court denied the defendants’ motion for reconsideration of the March 31, 2016 Order, and did so within only two hours of the filing of the defendants’ reply. On September 6, 2017, the court certified the class and denied defendants’ motion for summary judgment on the issue of reliance.
Submit Claim Form
If you purchased or otherwise acquired the publicly traded common stock of Liquidity Services, Inc. during the period from February 1, 2012 through May 7, 2014, inclusive, and were damaged thereby, you may be entitled to receive money from the proposed settlement. To be eligible for a payment, you must submit a Claim Form to the Claims Administrator so that it is postmarked or electronically submitted no later than November 3, 2018.
A Settlement Hearing will be held on October 5, 2018 before the Honorable Chief Judge Beryl Howell at 9:30 a.m., in Courtroom 22A at the United States District Court for the District of Columbia, 333 Constitution Avenue N.W., Washington, D.C. 20001. Following the hearing, the court will make a final determination of whether the settlement should be approved.
The case is Howard v. Liquidity Services Inc., No. 14-cv-1183 (D.D.C.). The lead plaintiffs are Newport News Employees’ Retirement Fund and Caisse de dépôt et placement du Québec.
For additional information regarding the settlement and the hearing, investors may access the Notice of Settlement here: Liquidity Services Settlement Notice
The Proof of Claim form is also available here: Liquidity Services Proof of Claim