Labaton Recovers $17 Million for Investors in Howard v. Liquidity Services
NEW YORK (July 9, 2018) – Labaton Sucharow LLP, as co-lead counsel, secured a $17 million settlement on behalf of investors in a securities class action against Liquidity Services, an online auction marketplace that provides its customers with a platform to buy and sell wholesale, surplus and salvage goods such as industrial machinery, equipment, materials, vehicles and inventory. Liquidity denied any liability throughout the litigation.
Our initial complaint alleged that Liquidity misrepresented its financial condition through false and misleading statements related to its current and future profitability, the performance of recent acquisitions and the adverse effects of a decline in business with one of its major clients, the U.S. Department of Defense.
The efforts of Labaton’s in-house investigative team were helpful in convincing the court to deny Liquidity’s attempts to dismiss the case. In December 2016, we opposed defendants’ motion to dismiss the complaint that included testimony from 20 confidential witnesses supporting our claims. Shortly after the defendants’ reply, Chief Judge Beryl Howell of the U.S. District Court for the District of Columbia denied the motion in part, allowing plaintiffs to pursue claims concerning the performance of Liquidity’s retail division. Judge Howell later granted class certification in September 2017.
Labaton represented Newport News Employees’ Retirement Fund and Caisse de dépôt et placement du Québec, the lead plaintiffs in the case. The Labaton team included partners Jon Gardner, Carol Villegas and Mark Willis.