Company Website:
http://www.robbinsarroyo.com
SAN DIEGO & WINTER PARK, Fla. -- (Business Wire)
Shareholder rights law firm Robbins
Arroyo LLP announces that purchasers of IZEA Worldwide, Inc.
(NasdaqGS: IZEA) have filed a shareholder action against the company's
officers and directors for breaches of their fiduciary duties from May
15, 2015 through the present. IZEA creates and operates marketplaces
that connect marketers with content creators.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/izea-inc/
IZEA Accused of Overstating Its Content Revenue
IZEA generates revenue from various sources, including content revenue
from purchases of custom branded content for use on the purchasers'
sites, as well as third party content marketing and native advertising
efforts. In January 2015, IZEA acquired Ebyline and its technology
platform that was created to source and compensate creators for the
creation and delivery of editorial content. According to the complaint,
during the relevant period, IZEA described revenue from Ebyline as
content revenue and represented that it had a significant effect on
IZEA's overall gross profit percentage. On April 2, 2018, IZEA revealed
an error in accounting for revenue and cost of sales related to the
self-service Content Workflow (previously known as content revenue)
portion of the company's revenue. Then, on April 3, 2018, IZEA reported
that the company's financial statements from 2015 onward should no
longer be relied upon. Specifically, the amount previously reported as
gross profit on Content Workflow should be the amount reported as
revenue. The price of IZEA stock fell on this news, and the stock
continues to decline.
IZEA Shareholders Have Legal Options
If you would like more information about your rights and potential
remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com,
or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. Sign up for our FREE
portfolio monitoring service, Stock
Watch.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181023006198/en/
Contacts:
Robbins Arroyo LLP
Leonid Kandinov
(619) 525-3990 or Toll Free
(800) 350-6003
LKandinov@robbinsarroyo.com
www.robbinsarroyo.com
Source: Robbins Arroyo LLP
© 2024 Canjex Publishing Ltd. All rights reserved.