
LegalZoom.com, Inc. (LZ)
Whether directors and officers of LegalZoom.com, Inc. (LZ) breached their fiduciary duties to the company and its shareholders.
Investigation
02/26/2021
Initial Lawsuit
02/26/2021
Lawsuit Progression
03/31/2022
Investigating Infinity Q Diversified Alpha Fund’s net asset value (NAV) calculations (notably swap pricing models) and its Chief Investment Officer (CIO) adjustments to certain parameters within the third-party pricing model that affected the valuation of the swaps held by the fund, ultimately rendering previously issued NAV unreliable.
02/19/2021
Trust for Advised Portfolios and Infinity Q Capital Management LLC file an application (Federal Register link) with the SEC “to suspend the right of redemption with respect to shares of the Fund” because of its “inability, as required under the Fund’s valuation procedures, to value certain Fund holdings and the Fund’s resulting inability to calculate net asset value.”
The application further explains the CIO’s involvement:
“The Fund’s current portfolio includes swap instruments for which Infinity Q calculates fair value using models provided by a third-party pricing vendor. As of February 18, 2021, the Fund’s reported NAV was derived using a valuation for these Swaps that resulted in the value of the Swaps constituting approximately 18% of the Fund’s reported NAV.
Plaintiff brings this securities class action on behalf of all persons and entities who purchased the Infinity Q Diversified Alpha Fund Investor Class shares (IQDAX) or Institutional Class shares (IQDNX) between December 21, 2018 and February 22, 2021, both dates inclusive.
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:
(1) Infinity Q’s Chief Investment Officer made adjustments to certain parameters within the third-party pricing model that affected the valuation of the swaps held by the Fund;
(2) consequently, Infinity Q would not be able to calculate NAV correctly;
(3) as a result, the previously reported NAVs were unreliable;
(4) because of the foregoing, the Fund would halt redemptions and liquidate its assets; and
(5) as a result, the Prospectuses were materially false and/or misleading and failed to state information required to be stated therein.
03/31/2022
The court issued an order appointing the lead plaintiff and lead counsel.
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