Faruqi & Faruqi, LLP’s national practice focuses on complex civil litigation. The firm practices in the areas of Securities, Merger & Transactional, Shareholder Derivative, Antitrust, Consumer Class Action, and Wage & Hour litigation.
Monday, January 18, 2016
Faruqi & Faruqi Investigation: 6D Global Technologies, Inc.
The investigation focuses on whether the Company’s Board of Directors and its officers committed mismanagement and breached their fiduciary duties. On September 8, 2015, the Department of Justice ("DOJ") indicted Benjamin Wei, the founder and principle of New York Global Group (“NYGG”), for securities fraud. On September 10, 2015, the DOJ arrested Wei and the Securities and Exchange Commission filed a civil action against Wei and NYGG for their part in the fraudulent scheme to obtain and profit from undisclosed, controlling ownership interests in several U.S. companies created through "reverse Chinese mergers," including 6D Global, that were secretly controlled by Wei and NYGG.
As a result, on September 10, 2015, Nasdaq halted trading in the Company’s stock and on November 25, 2015, the Company filed a current report on Form 8-K announcing that on November 20, 2015, the Company received a letter from The Nasdaq Listing Qualifications Staff stating that Nasdaq has determined that the Company’s common stock would be subject to suspension and then delisting from Nasdaq. Additionally as a result of the foregoing, a securities fraud action and a private action brought by a 6D Global institutional investor have been filed against the Company and certain of its officers and directors.