A lawsuit was filed on behalf of investors in IZEA, Inc. (NASDAQ: IZEA) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 04/24/2018 -- An investor, who purchased shares of IZEA, Inc. (NASDAQ: IZEA), filed a lawsuit over alleged violations of Federal Securities Laws by IZEA, Inc. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of IZEA, Inc. (NASDAQ: IZEA) have certain options and for certain investors are short and strict deadlines running. Deadline: June 4, 2018. NASDAQ: IZEA investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Winter Park, FL based IZEA, Inc. operates online marketplaces that facilitate transactions between marketers and content creators. IZEA, Inc. reported that its annual Total Revenue rose from over $20.476 billion in 2015 to over $27.31 billion in 2016 and that its Net Loss declined from over $11.3 billion in 2015 to $7.56 billion in 2016.
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.
Shares of IZEA, Inc. (NASDAQ: IZEA) declined on April 3, 2018 to as low as $2.34 per share.
The plaintiff claims that between May 15, 2015 and April 3, 2018, 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
Those who purchased shares of IZEA, Inc. (NASDAQ: IZEA) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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