SAN DIEGO & ST. PETER PORT, Guernsey–(BUSINESS WIRE)–$BRFRF #classaction–Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Burford Capital Limited (OTC: BRFRF) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between March 18, 2015 and August 7, 2019. Burford Capital is a litigation-financing company that offers services for clients participating in litigation, arbitration, asset recovery, and other legal finance activities.
If you suffered a loss as a result of Burford’s misconduct, click here.
Burford Capital Limited (BRFRF) Accused of Misleading Shareholders
According to the complaint, throughout the relevant period, in Burford’s annual year-end reports, Burford consistently touted significant growth and steady increases in its internal rate of return (“IRR”) on investments and return on invested capital (“ROIC”). The reports also included signed Directors’ Reports that acknowledged the responsibility of the directors to ensure that Burford’s statements gave a “true and fair view” of the company’s financial position and performance. However, contrary to that affirmed responsibility, Burford’s reports misled investors by failing to disclose that Burford had been manipulating its metrics, including ROIC and IRR, to hide that Burford was at high risk for a liquidity crunch and potentially even insolvent. Despite efforts to conceal Burford’s true financial situation, on August 7, 2019, Muddy Water Research issued a report revealing that Burford was mismarking the value of its investments in its legal cases and manipulating its metrics, including ROIC and IRR. On this news, Burford’s shares plummeted 42.45% to close at $8 while its ADRs fell 43.93%.
If you purchased Capital Limited (BRFRF) securities during the class period, you have until October 21, 2019, to ask the court to be appointed lead plaintiff for the class.
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