CASE FILED: Block & Leviton LLP Announces the Filing of a Securities Fraud Lawsuit Against J2 Global, Inc.; Investors Who Lost Money Should Contact the Firm

BOSTON, July 08, 2020 (GLOBE NEWSWIRE) — Block & Leviton LLP (www.blockesq.com), a national securities litigation firm, announces that a securities fraud class action has been filed against J2 Global, Inc. (NASDAQ: JCOM) and certain of its executives. Investors who purchased J2 Global shares between October 5, 2015 and June 29, 2020 and who lost money are encouraged to contact the firm for a free case evaluation.
J2 Global is a digital media roll-up that has acquired 186 businesses since its inception. Its CEO has described the Company’s “acquisition system” as its “single great competitive advantage.”But on Dec. 12, 2018, Glasshouse Research released a forensic report stating J2’s “acquisition accounting remains suspect,” and concluding “that management has touted many farce operating metrics that do not show J2’s true economic value.”Then on June 30, 2020, analyst Hindenburg Research issued a series of tweets and published a report regarding J2 Global entitled “J2 Global: Troubling Related Party Transactions, Looming Impairments and a Suspicious History of Insider Enrichment Spanning Decades.” In its report, Hindenburg writes that “J2’s opaque acquisition approach has opened the door to egregious insider self-enrichment, which we approximate totals $117 million to $172 million based on publicly available information.” Hindenburg continued that J2 had recently committed $200 million of shareholder cash to a newly-formed investment vehicle run by its Chairman, who has a track record of venture investment failures. Hindenburg further stated that it found decades of intertwined financial interests between board members and executives, calling several of J2’s directors’ independence into question. Hindenburg also raised “tricky accounting,” noting that J2 has never taken a goodwill impairment, yet the Company’s subsidiaries have reported multiple material goodwill impairments that do not appear to coincide with J2’s financials.On this news, the price of J2 Global’s shares plummeted.The lawsuit was filed in the U.S. District Court for the Central District of California, and is captioned Garcia v. J2 Global, Inc., No. 2:20-cv-06096. The deadline to move the court to be appointed lead plaintiff is 60 days from today.If you purchased or acquired shares of J2 Global and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at [email protected], or at https://shareholder.law/cases/?case=jcom.Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.This notice may constitute attorney advertising.CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (617) 398-5600
Email: [email protected]
SOURCE: Block & Leviton LLP
www.blockesq.com

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