On January 22, 2019, Pomerantz LLP was appointed Lead Counsel in a class action lawsuit filed against Namaste Technologies, Inc. and certain of its officers.
The investigation concerns whether Namaste and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On October 4, 2018, Citron Research ("Citron") published an article entitled "Namaste: Citron has exposed complete FRAUD that underpins the 'Business' of Namaste," stating that the Company had entered into an "undisclosed related party" transaction. The Citron report alleged, among other issues, that Namaste's Chief Executive Officer had falsely "promised investors as Nasdaq listing" and had falsely represented that Namaste had divested the Company of its U.S. assets in a sale to an "arm's length" purchaser, when the purchaser was in reality a Namaste executive.
Following publication of the Citron report, Namaste's stock price fell $0.19 per share, or roughly 10.5% over the next two trading days, to close at $1.62 per share on October 5, 2018.