NEW YORK, June 18, 2018 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of SITO Mobile Ltd. ("SITO Mobile" or the "Company") (NASDAQ: SITO).
On April 2, 2018, after the market closed, SITO Mobile filed its Form 10-K for fiscal 2017 and a Form 8-K disclosing multiple accounting errors in its previously issued second and third quarter 2017 financial results for the periods ending June 30, 2017 and September 30, 2017. Reportedly, on March 31, 2018, after consulting with its independent accounting firm BDO USA, LLP, the Audit Committee of the Board concluded that those quarterly reports should not be relied upon and would need to be corrected due to improper accounting. The errors relate to professional fees for a July 2017 offering of common stock, the classification of certain warrants, and revenue derived from a joint venture. The Company also disclosed that it had "material weaknesses in [its] internal controls over financial reporting caused by an insufficient complement of finance and accounting resources within the organization to ensure the proper application of U.S. GAAP relating to the Company's complex non-routine transactions."
On April 3, 2018, the Company issued a press release that summarized the "Net Impact of Accounting Adjustments." Further, the Company stated that "[t]hese accounting adjustments . . . reflect management's dedication to improving the accounting and disclosure regime of the Company and result in part from management's engagement in February of this year of BDO USA, LLP, an internationally-recognized accounting firm, as the Company's independent outside auditor."
Following the April 2-3, 2018 disclosures, SITO Mobile's shares fell $0.44 per share, or 11.6%, to close at $3.36 per share.
If you are an investor in SITO Mobile and would like to discuss our investigation, please contact us by emailing pmayer@kaplanfox.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: dhall@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
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SOURCE Kaplan Fox & Kilsheimer LLP
