Bragar Eagel & Squire, P.C. Reminds Investors That a Class Action Lawsuit Has Been Filed Against Verus International, Inc. and Encourages Investors to Contact the Firm

NEW YORK, June 19, 2021 – (BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, is reminding investors that a class action lawsuit has been filed in the U.S. District Court for Maryland on behalf of investors who purchased securities of Verus International, Inc. (other OTC: VRUS) between June 17, 2019 and October 8, 2020, inclusive (the “Class Period”). Investors have until June 22, 2021 to apply to the court for appointment as lead plaintiff in the litigation.

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Verus purports to be a multi-line consumer products company developing branded product lines in the US and worldwide. Verus was reportedly the fourth fastest growing consumer products company in late 2019, including the Big League Foods acquisitions and a controlling stake in NutriBrands.

In an effort to contain the company’s volatile stock price, which had fallen below $ 0.01 per share, defendants argued that Verus took the opportunity offered by the COVID-19 pandemic. On April 3, 2020, Verus announced the acquisition of a 51% controlling interest in ZC Top Apparel Manufacturing, Inc. (“ZTAM”), a reputed Philippines-based manufacturer of N95 reusable cloth masks and biohazard suits. According to the press release, Verus “provided the funding and other resources” to begin accelerating outstanding government contracts and that “protective gear could overshadow anything” [Verus’s] existing sources of income. “

As a result of this news, the company’s share price rose from $ 0.014 to a closing price of $ 0.018 on April 3, 2020 following the announcement. Over the next few days, the company’s share price continued to rise, closing at $ 0.021 on April 6, 2020.

However, in the weeks and months that followed, the company’s share price fell as the truth slowly emerged. Initially, Verus announced that “logistical problems” were occurring with the introduction of sample masks and other PPE. Second, months after the announcement, the company had to secure a facility in Vietnam that apparently had nothing to do with ZTAM to make sample masks. Third, ZTAM’s Chief Executive Officer (“CEO”) Ronald Ian Bilang tweeted cryptically about a possible escalation of regulatory investigations, the involvement of the Office of International Affairs (“OIA”) and continued deafening silence from Verus and the defendants.

The story goes on

Finally, on October 8, 2020, Verus announced that the company had issued ZTAM with a “repayment and notification of the cancellation of the transaction” for “failure to fulfill the contract and breach of contract”. According to the press release, ZTAM has not registered the “51% control share” required by Verus in the term sheet dated April 3, 2020.

At the time of this announcement, the company’s share price closed at just $ 0.002 per share, an overall decrease of 90.5% from when Verus announced its controlling stake in ZTAM.

If you have purchased Verus securities during the Class Action Period and suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this release or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at [email protected], by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.

About Bragar Eagle & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents private and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210618005569/en/

contacts

Bragar Adler & Knappe, PC
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com

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