BOSTON, Oct. 5, 2017 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, is investigating whether Shopify Inc. ("Shopify" or the "Company") (NYSE: SHOP) and certain of its officers and directors violated federal securities laws following reports that the Company is engaged in peddling a potentially illegal "get rich quick" scheme.
The investigation is prompted by an October 4, 2017, report from Citron Research ("Citron") alleging that Shopify's marketing strategy amounts to a "a completely illegal get-rich quick scheme." Citron alleged that Shopify relies upon so-called "affliates" and "partners" in order to promote its business on the Internet, in violation of applicable Federal Trade Commission guidelines. Citron alleged that Shopify improperly suggested that its users would become "millionaires." Citron said Shopfiy's practices resembled those of Herbalife, a business which reached a $200 million agreement to settle Federal Trade Commission charges that it deceived consumers into believing they could earn substantial money selling diet, nutritional supplement, and personal care products.
On this news, the Company's stock fell more than 10%, from $116.81 to $103.30 on October 4, 2017, and subsequently continued to fall.
If you purchased or otherwise acquired Shopify securities and have questions about your legal rights or possess information relevant to this investigation, you are encouraged to contact attorney Thomas Kirchofer at (617) 398-5600, by email at [email protected], or by visiting www.blockesq.com/shopify.
Confidentiality to whistleblowers or others with information relevant to this investigation is assured.
Block & Leviton LLP is a Boston-based law firm representing investors nationwide. The firm's lawyers have collectively been prosecuting securities cases on behalf of individual and institutional investors for over 50 years, and have recovered billions of dollars on their behalf. Block & Leviton's investigations into corporate wrongdoing were recently covered by the New York Times.
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Block & Leviton LLP
Thomas W. Kirchofer
155 Federal Street, Suite 400
Boston, MA 02110
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