An investigation on behalf of current long term investors in IZEA, Inc. (NASDAQ: IZEA) shares over possible breaches of fiduciary duty by certain officers and directors was announced.
San Diego, CA -- (SBWIRE) -- 10/31/2018 -- An investigation was announced concerning potential breaches of fiduciary duties by certain directors and officers of IZEA, Inc. .
Investors who are current long term investors in IZEA, Inc. (NASDAQ: IZEA) shares, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NASDAQ: IZEA stocks follows a lawsuit filed recently against IZEA, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ: IZEA stocks, concerns whether certain IZEA directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Central District of California the plaintiff alleges that the defendants made false and/or misleading statements and/or failed to disclose that IZEA, Inc. was misreporting revenue from the Company's Content Workflow services as gross amounts billed to marketers instead of on a net transaction basis, that the amount IZEA previously reported as gross profit on Content Workflow should be the amount reported as revenue, that IZEA lacked adequate internal controls, and that as a result, Defendants' public statements were materially false and misleading at all relevant times
On April 2, 2018, IZEA, Inc. revealed that it would delay its fourth quarter and full year 2017 earnings release and a conference call. IZEA's Audit Committee identified an error in accounting for revenue and cost of sales related to the self-service Content Workflow portion of its revenue. According to the company, the amount it previously reported as gross profit on Content Workflow should be reported as revenue. IZEA, Inc. also announced in a Form 8-K filed with the SEC, that its previously issued financial statements included in its annual reports for the years ended December 31, 2015 and 2016, and quarterly reports for each quarter for the years ended December 31, 2015 and 2016 and the first three quarters for the year ended December 31, 2017 should no longer be relied upon.
Those who purchased shares of IZEA, Inc. (NASDAQ: IZEA) have certain options and should contact the Shareholders Foundation.
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