Upexi Files litigation in Nevada as first Step in Determining Manipulation of Fractional Share Roundups during Reverse Stock Split
Upexi (NASDAQ:UPXI) has filed a complaint in the U.S. District Court for Nevada to investigate and pursue legal action against individuals involved in alleged share manipulation during the company's reverse stock split. Following the split, financial institutions requested 202,183 round-up shares, causing over 19% shareholder dilution and increasing individual shareholders by approximately 40 times. The suspicious activity occurred during a three-day trading period between the split announcement and effective date. Multiple other Nasdaq-listed companies affected by similar manipulation may join as co-plaintiffs or pursue independent legal action.
Upexi (NASDAQ:UPXI) ha presentato un reclamo presso il tribunale distrettuale degli Stati Uniti per il Nevada per indagare e intraprendere azioni legali contro individui coinvolti in presunti manomissioni delle azioni durante il frazionamento delle azioni della società. Dopo il frazionamento, le istituzioni finanziarie hanno richiesto 202.183 azioni di arrotondamento, causando un'ulteriore diluizione del 19% per gli azionisti e aumentando il numero degli azionisti individuali di circa 40 volte. L'attività sospetta è avvenuta durante un periodo di negoziazione di tre giorni tra l'annuncio del frazionamento e la data effettiva. Altre numerose aziende quotate al Nasdaq colpite da manipolazioni simili potrebbero unirsi come co-dimostranti o intraprendere azioni legali indipendenti.
Upexi (NASDAQ:UPXI) ha presentado una queja en el Tribunal de Distrito de EE.UU. para Nevada para investigar y emprender acciones legales contra individuos involucrados en una supuesta manipulación de acciones durante el desdoblamiento de acciones de la empresa. Tras el desdoblamiento, las instituciones financieras solicitaron 202,183 acciones de redondeo, lo que causó una dilución de más del 19% para los accionistas y aumentó el número de accionistas individuales aproximadamente 40 veces. La actividad sospechosa ocurrió durante un período de negociación de tres días entre el anuncio del desdoblamiento y la fecha efectiva. Varias otras empresas cotizadas en Nasdaq afectadas por manipulaciones similares pueden unirse como co-demandantes o emprender acciones legales independientes.
Upexi (NASDAQ:UPXI)는 네바다 주 미국 지방법원에 공소를 제기하여 회사의 역 분할 기간 동안 주식 조작에 연루된 개인들을 조사하고 법적 조치를 취하도록 요청했습니다. 분할 이후, 금융 기관들은 202,183주의 라운드업 주식을 요청했고, 이는 19% 이상의 주주 희석을 초래했으며, 개인 주주 수는 약 40배 증가했습니다. 의심스러운 활동은 분할 발표와 효력 발생일 사이의 3일 거래 기간 동안 발생했습니다. 유사한 조작에 영향을 받은 여러 다른 나스닥 상장 기업들도 공동 원고로 참여하거나 독립적인 법적 조치를 취할 수 있습니다.
Upexi (NASDAQ:UPXI) a déposé une plainte auprès du tribunal de district des États-Unis pour le Nevada afin d'enquêter et d'engager des poursuites judiciaires contre des individus impliqués dans une prétendue manipulation des actions lors du fractionnement d'actions de l'entreprise. Après le fractionnement, des institutions financières ont demandé 202.183 actions d'arrondissement, entraînant une dilution de plus de 19 % pour les actionnaires et multipliant le nombre d'actionnaires individuels par environ 40. L'activité suspecte s'est produite lors d'une période de négociation de trois jours entre l'annonce du fractionnement et la date d'entrée en vigueur. Plusieurs autres sociétés cotées au Nasdaq affectées par cette manipulation pourraient se joindre en tant que co-demandeurs ou engager une action en justice indépendante.
Upexi (NASDAQ:UPXI) hat beim US-Bezirksgericht für Nevada eine Klage eingereicht, um Ermittlungen einzuleiten und rechtliche Schritte gegen Personen einzuleiten, die an einer mutmaßlichen Manipulation von Aktien während des Reverse Stock Splits des Unternehmens beteiligt sind. Nach dem Split forderten Finanzinstitute insgesamt 202.183 Rundungsaktien, was zu einer Verdünnung der Anteile von über 19% führte und die Anzahl der einzelnen Aktionäre um etwa das 40-fache erhöhte. Die verdächtigen Aktivitäten fanden während eines drei Tage dauernden Handelszeitraums zwischen der Bekanntgabe des Splits und dem Stichtag statt. Mehrere andere an der Nasdaq notierte Unternehmen, die von ähnlicher Manipulation betroffen sind, könnten als Mitkläger auftreten oder eigenständige rechtliche Schritte einleiten.
- Company taking legal action to protect shareholder value
- Potential for multiple companies joining the lawsuit strengthens the case
- 19% shareholder dilution from round-up shares request
- 40x increase in individual shareholders affecting stock structure
- Suspected market manipulation affecting stock value
Insights
This legal action against alleged stock manipulation represents a significant development in addressing a systemic issue affecting microcap companies. The complaint targets suspicious trading activity during Upexi's reverse stock split, where unusual share roundups led to a
The litigation's potential impact extends beyond Upexi, as it could establish important legal precedents for addressing manipulative trading schemes in reverse stock splits. The discovery process will be important in uncovering evidence of organized trading groups and potential widespread market manipulation. If successful, this case could prompt regulatory changes and provide a framework for other affected companies to seek remedies.
For investors, this represents both a challenge and opportunity - while the dilution has negatively impacted current shareholders, the legal action could potentially recover damages and strengthen market integrity for microcap stocks.
The market implications of this case are substantial for the microcap sector. The alleged manipulation scheme involving 202,183 round-up shares has created artificial dilution that distorts true market value. This type of manipulation particularly affects smaller companies during critical corporate actions like reverse splits.
The broader market impact could be significant as other affected Nasdaq-listed companies may join as co-plaintiffs, potentially leading to a larger class action. This coordinated legal response could help establish better protections for microcap companies during corporate restructuring events. For investors, this highlights the importance of monitoring unusual trading patterns around corporate actions and understanding the risks in microcap investments.
TAMPA, FL / ACCESSWIRE / November 25, 2024 / Upexi, Inc. (NASDAQ:UPXI) (the "Company" or "Upexi"), a multi-faceted Amazon and Direct-to-Consumer brand owner and innovator in aggregation, announces the Company has filed a complaint in the United States District Court for the District of Nevada to pursue the groups and individuals who orchestrated the manipulative and fraudulent activity in the shares round-up scheme related to Upexi's reverse stock split. Upexi anticipates that the court, through the discovery process, will enable the Company to determine who are the individuals owning the accounts and engaged in the manipulative trading transactions within those accounts in connection with and around the announcement and effective date of Upexi's reverse stock split. The Company and its legal team will pursue aggressively obtaining the relief that it seeks in the Complaint.
The Company previously announced the reverse stock split. Several weeks subsequent to the effective date, the financial institutions where the suspect trading took place requested 202,183 round-up shares, which represented more than a
Allan Marshall, the Company's Chief Executive Officer, stated, "The company has taken the first and precedent-setting action in exposing the blatant manipulation around reverse stock splits. Since our previous release regarding this issue, I have been contacted by a number of companies who also were victims of this damaging stock manipulation scheme. I am astonished by the extent of the evidentiary support and encouragement I have received from multiple sources to advance our claims against those whom we believe manipulated the shares of Upexi and other securities. We believe that the evidence will identify and establish organized group trading, groups charging fees to buy and distribute shares for individuals, and individuals opening up to 50 individual accounts to perpetrate the scheme. The fact that so many microcap companies and their shareholders have been damaged in compliant reverse stock splits with no regulatory intervention to protect them against such manipulative activity is unacceptable, and we hope this lawsuit will bring into focus the need for regulatory changes to bring to an end these sinister and deceptive practices. We will follow through with this lawsuit for as long as it takes and hopefully undo some of the damage perpetrated against our shareholders by third parties and to investors in many other companies as well."
Upexi has identified other Nasdaq-listed companies that were victimized by similar manipulative conduct, possibly by the same perpetrators. Some of those companies may join the case as co-Plaintiffs given the common conduct and manipulative trading patterns detected, or they may pursue relief independently.
About Upexi, Inc.:
Upexi is a multi-faceted brand owner with established brands in the health, wellness, pet, beauty, and other growing markets. We operate in emerging industries with high growth trends and look to drive organic growth of our current brands. We focus on direct to consumer and Amazon brands that are scalable and have anticipated, high industry growth trends. Our goal is to continue to accumulate consumer data and build out a significant customer database across all industries we sell into. The growth of our current database has been key to the year over year gains in sales and profits. To drive additional growth, we have and will continue to acquire profitable Amazon and eCommerce businesses that can scale quickly and reduce costs through corporate synergies.
FORWARD LOOKING STATEMENTS:
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with business strategy, potential acquisitions, revenue guidance, product development, integration, and synergies of acquiring companies and personnel. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward- looking statements. Although we believe that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Company Contact
Andrew Norstrud, Chief Financial Officer
Email: andrew.norstrud@upexi.com
Phone: (702) 332-5591
Investor Relations Contact
KCSA Strategic Communications
Valter Pinto, Managing Director
Email: Upexi@KCSA.com
Phone: (212) 896-1254
SOURCE: Upexi
View the original press release on accesswire.com
FAQ
What legal action did Upexi (UPXI) take regarding the reverse stock split manipulation?
How many round-up shares were requested after Upexi's (UPXI) reverse stock split?
What was the impact of the alleged manipulation on Upexi's (UPXI) shareholder structure?
