Verus International, Inc.

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:

(i) Verus lacked the requisite resources, infrastructure and/or expertise to exploit its Big League Foods brand and its MLB license;
(ii) the Company issues in production ramp-up were not fully resolved to enable the Company to fulfill customer orders;
(iii) as a result, the Company’s prospects and outlook were not as represented;
(iv) the Company’s internal controls for financial reporting and accounting were not sufficient with specific respect to stock-based compensation and classification of equity instruments;
(v) as a result, the Company’s financial results, outlook and prospects were materially worse than represented;
(vi) as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times.