VERUS INTERNATIONAL ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Verus International, Inc. and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the US District Court for the Maryland County on behalf of investors carrying Verus International, Inc. (Other OTC: VRUS) securities 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 the lead plaintiff in the lawsuit.
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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 goods company at the end of 2019, which also included the acquisition of Big League Foods and a majority stake in NutriBrands.
In an effort to contain the company’s volatile stock price, which had fallen below $ 0.01 per share, defendants believed that Verus had seized the opportunity offered by the COVID-19 pandemic. On April 3, 2020, Verus announced the acquisition of a 51% majority stake in ZC Top Apparel Manufacturing, Inc. (“ZTAM”), an alleged Filipino manufacturer of reusable N95 tissue masks and biohazard suits. According to the press release, Verus “provided the funding and other resources” to meet upcoming government orders on an expedited basis, and that “protective gear could overshadow anything [Verus’s] existing sources of income. ”
In that 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 was slowly revealed. Initially, Verus found that the introduction of sample masks and other PPE created “logistical problems”. Second, the company had to secure a facility in Vietnam that appeared to be unrelated to ZTAM to produce sample masks months after the announcement. Third, Ronald Ian Bilang (“Bilang”), ZTAM’s Chief Executive Officer (“CEO”), cryptically tweeted about a possible escalation of regulatory investigations, the involvement of the Office of International Affairs (“OIA”) and Verus’s continued deafening silence and defendants.
Finally, on October 8, 2020, Verus announced that the company had issued a “Transaction Refund and Notice of Rescission” to ZTAM due to a “failure to perform and breach of contract”. According to the press release, ZTAM has not registered Verus’ “51% majority stake” as required by the April 3, 2020 term sheet.
At the time of this announcement, the company’s share price closed at just $ 0.002 per share, a 90.5% decrease from when Verus announced its controlling stake in ZTAM.
If you have purchased Verus securities during the class period and suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at firstname.lastname@example.org, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual 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.