This case involves a securities class action on behalf of a peer-to-peer lending company’s common stock purchasers. The class purchased from the company’s initial public stock offering. It was alleged that the company manipulated its performance by engaging in self-dealing, altering loan applications, and misleading institutional directors. As a result, the company was forced to amend its annual report, which rendered prior SEC filings unreliable. Consequently, share prices fell 90% from when they traded during the week of the company’s initial public offering (IPO). An expert in IPO investigatory practices was sought to opine on reasonable investigations to the truth and accuracy of registration statements for initial public offers.
Question(s) For Expert Witness
1. Please describe your experience verifying the accuracy of registration statements for IPOs. 2. What are protocols to ensure the accuracy of such statements?
Expert Witness Response E-232803
I have reviewed registration statements for IPOs as a DOJ investigator in criminal cases and as part of joint investigations with the SEC. In this role, I was responsible for determining the veracity of these statements and financials. I also have experience serving as an investigator and consultant on cases involving large corporate entities. Typically, before filing, these financials would have been reviewed and signed off on by the CEO and CFO of the company. These individuals would resume liability for any false statements.
About the author
John Lomicky
John Lomicky is a J.D. candidate at FSU Law with a multidisciplinary background. He earned his Bachelor's degree in Neurobiology and Near Eastern Studies from Georgetown University and has graduate degrees in International Business and Eurasian Studies. John's professional experience includes working in private equity as an Associate at Kingfish Group and in legal business development and research roles at the Expert Institute. His expertise spans managing sales teams, company expansion, and providing consultative services to legal practices in various fields.
