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Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Liberty Tax, Inc. (TAX)

NEW YORK, Dec. 19, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Liberty Tax, Inc. (“Liberty Tax” or the “Company”) (NASDAQ:TAX) in the United States District Court for the Eastern District of New York on behalf of a class consisting of investors who purchased or otherwise acquired Liberty Tax securities on the open market from June 29, 2016 through December 11, 2017, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.

On September 6, 2017, Liberty Tax announced that its founder and Chief Executive Officer (“CEO”) John T. Hewitt had been terminated. On November 7, 2017, Liberty Tax announced the resignation of Kathleen Donovan, its Vice President and Chief Financial Officer. On this news, shares of Liberty Tax fell $2.25 per share or over 16% from its previous closing price to close at $11.00 per share on November 8, 2017.

On December 11, 2017, Liberty Tax filed a Form 8-K with the SEC, reporting that KPMG LLP resigned as its independent registered public accounting firm and that Liberty Tax will delay the filing of its quarterly report on Form 10-Q for the quarter ended October 31, 2017. KPMG reportedly expressed concerns regarding internal controls over financial reporting as related to the integrity and tone at the top set by Liberty Tax’s former CEO John T. Hewitt. On this news, shares of Liberty Tax fell during intraday trading on December 11, 2017, damaging investors

The Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (1) Liberty Tax’s former CEO John T. Hewitt created an inappropriate tone at the top; (2) the inappropriate tone at the top led to ineffective entity level controls over the organization; and (3) as a result, Defendants’ statements about Liberty Tax’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the February 13, 2018 lead plaintiff motion deadline.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.

/EIN News/ --

Distribution channels: Consumer Goods, Law