Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the District of Maryland on behalf of investors that purchased 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 to be appointed as lead plaintiff in the lawsuit.
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Verus purports to be a multi-line consumer packaged goods company, which develops branded product lines in the U.S. and globally. Verus was purportedly the fourth fastest growing consumer products food company at the end of 2019, which included its acquisitions of the Big League Foods and a controlling interest in NutriBrands.
In order to stem the Company’s reeling stock price, which had dipped below $0.01 per share, defendants represented that Verus seized the opportunity presented by the COVID-19 pandemic. On April 3, 2020, Verus announced the acquisition of a controlling 51% interest in ZC Top Apparel Manufacturing, Inc., (“ZTAM”), a purported Philippines-based manufacturer of reusable N95 fabric masks and biohazard suits. According to the press release, Verus was “providing the funding and other resources” to begin fulfilling pending governmental orders on an expedited basis and that “protective gear could eclipse all of [Verus’s] existing revenue sources.”
On this news, the Company’s stock price rose from $0.014 to a close of $0.018 on April 3, 2020 following the announcement. Over the next few days, the Company’s stock price continued to climb, closing at $0.021 on April 6, 2020.
However, in the weeks and months that followed, the Company’s stock price declined as the truth was slowly revealed. First, Verus revealed that rollout of sample masks and other PPE were encountering “logistical issues.” Second, the Company needed to secure a facility in Vietnam, seemingly unrelated to ZTAM, to produce sample masks months after the announcement. Third, ZTAM Chief Executive Officer (“CEO”) Ronald Ian Bilang (“Bilang”) cryptically tweeted about a potential escalation of regulatory investigations, involvement of the Office of International Affairs (“OIA”) and continued deafening silence from Verus and defendants.
Finally, on October 8, 2020, Verus announced that the Company issued a “Repayment and Notice of Rescission of Transaction” to ZTAM, as a result of “failure of contractual performance and breach of contract.” According to the press release, ZTAM did not register Verus’s “controlling interest of 51%” as required under the term sheet dated April 3, 2020.
At the time of this announcement, the Company’s stock price closed at just $0.002 per share, a total decline 90.5% from when Verus announced its controlling interest in ZTAM.
If you purchased Verus securities during the Class Period and suffered a loss, are a long term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. 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, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.