SAN DIEGO and SAN FRANCISCO, Feb. 18, 2015 (GLOBE NEWSWIRE) -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Xoom Corporation (Nasdaq:XOOM) has filed a federal securities fraud class action complaint in the Superior Court of the State of California for the County of San Franscisco. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 in connection with the company's initial public offering ("IPO") on February 15, 2013. Xoom provides digital consumer-to-consumer online money transfers services.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/xoom-corp
Xoom Misrepresents Its Business Practices
Since the company's IPO, Xoom stock has dropped from a class period high of $35.27 in July 2013 to $15.13 per share as of February 12, 2015, representing a 57% decrease. According to a recently filed class action, on January 5, 2015, Xoom announced that $30.8 million in corporate cash was illegally transferred to overseas accounts and that Matt Hibbard had resigned as Chief Financial Officer. The complaint states that these actions were the result of seriously deficient internal controls at the company, which the company failed to disclose in its registration statement and prospectus in connection with its IPO.
Xoom Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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