NQ Mobile, Inc. $NQ and Co-Defendants Omar Khan & Matthew Mathison Identify Likely Bases for Motion to Dismiss Class Action Securities Complaint in In re Finocchiaro, et al. v. NQ Mobile, Inc., et al. , Case No. 15 Civ. 6385 (NRB)





On January 19, 2016, Scott Musoff of the law firm of Skadden, Arps, Slate, Meagher & Flom LLP – in his role as counsel to NQ Mobile, Inc. and Matthew Mathison – submitted a letter to United States District Court Judge Naomi Reice Buchwald in the case of In re Finocchiaro, et al. v. NQ Mobile, Inc., et al., Case No. 15 Civ. 6385 (NRB), pending before her. In the letter, Mr. Musoff states the purpose of the letter:

We and counsel for Defendant Omar Sharif Khan, who will also submit a separate and supplemental letter, respectfully write pursuant to Section 2.B of Your Honor’s Individual Practices to identify the bases for the Defendants’ anticipated motions to dismiss, and, alternatively, to strike the Second Amended Class Action Complaint (the “Complaint” or “SAC”) pursuant to Federal Rules of Civil Procedure 8(a), 9(b), 12(b)(6), and 12(f), and the Private Securities Litigation Reform Act (“PSLRA”), 15 U.S.C. § 78u-4, and to request a pre-motion conference.

As noted in the above quote, a separate letter was filed by counsel to co-defendant Omar Khan, the former co-CEO of NQ Mobile. That letter was filed by his counsel, John Vukelj of the law firm of DLA Piper LLP (US). A copy of the letter submitted on behalf of Mr. Khan is embedded below.

In the letter submitted on behalf of NQ Mobile and Mr. Mathison, a copy of which is also embedded below, counsel summarizes the arguments made as follows:

Plaintiffs have completely failed to comply with the PSLRA’s notice and lead plaintiff procedures, and thus cannot maintain this lawsuit as a class action. Even more remarkably, the Complaint does not identify a single particular statement by Defendants that is alleged to be false or misleading, and does not even attempt to allege any facts supporting an inference that each of the Defendants acted with the requisite scienter.

Embedded below is a copy of the January 19, 2016 letter submitted on behalf of NQ Mobile, Inc. and Matthew Mathison.

Embedded below is a copy of the January 20, 2016 letter submitted on behalf of Omar Khan.

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