NEW YORK, Apr. 21, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the District of Arizona on behalf of all persons or entities that purchased the securities of AudioEye, Inc. (“AudioEye” or the “Company”) (OTCBB:AEYE) between May 5, 2014 and April 1, 2015, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
The Complaint alleges that during the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) AudioEye's financial statements contained false statements as to the classification of revenues and expenses; (2) the Company lacked proper internal controls over its financial reporting; and (3) as a result of the foregoing, the Company's financial statements were materially false and misleading during the relevant time period.
On April 1, 2015, the truth was revealed when AudioEye announced that its previously issued financial statements for the quarters ended March 31, June 30 and September 30, 2014 would need to be restated due to errors. In addition, AudioEye announced that its preliminary earnings release issued by the Company on January 12, 2015 relating to the quarter and year ended December 31, 2014 should no longer be relied upon. Finally, the Company also stated that Edward O'Donnell had resigned as the Company's Chief Financial Officer.
As a result of this announcement, the Company's stock fell 22% during trading on April 1, 2015.
If you wish to serve as lead plaintiff, you must move the Court no later than June 15, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or 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.
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