The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Ryvyl Inc. f/k/a Greenbox POS (RVYL)
The Law Offices of Frank R. Cruz reminds investors of the upcoming April 3, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Ryvyl Inc. f/k/a/ Greenbox POS ("Ryvyl" or the "Company") (NASDAQ: RVYL) securities: (a) pursuant and/or traceable to the registration statement and prospectus (collectively, the "Registration Statement") issued in connection with the Company's January 29, 2021 public offering; and/or (b) between January 29, 2021 and January 20, 2023, inclusive (the "Class Period").
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On January 20, 2023, after the market closed, Ryvyl announced that its previous financial statements for the year-end and interim periods for fiscal 2021 and 2022 "can no longer be relied upon." The Company anticipated filing restatements, which will "result in decreases to toal revenue, increased net losses, decreases to total assets, and [decrease] total stockholder's equity." The Company also disclosed that it had determined there were "one or more material weaknesses" in its internal control over financial reporting, including a "material weakness related to accounting for certain complex business transactions."
On this news, Ryvyl's stock price fell $0.12, or 14.6%, to close at $0.70 per share on January 23, 2023, thereby injuring investors.
The complaint filed in this class action alleges that in the Registration Statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company's financial statements in 2021 and 2022 contained errors resulting in overstatements of revenue, assets, and stockholders' equity and understatements of losses; (2) as a result, Ryvyl would restate certain financials; (3) the Company's internal controls were inadequate; (4) the Company downplayed and obfuscated its internal controls issues; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Ryvyl securities during the Class Period, you may move the Court no later than April 3, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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