On August 3, 2021, the U.S. Securities and Exchange Commission (“SEC”) filed a complaint against Live Ventures, its Chief Executive Officer, and its Chief Financial Officer alleging “multiple financial, disclosure, and reporting violations related to inflated income and earnings per share, stock promotion and secret trading, and undisclosed executive compensation.” Specifically, the SEC alleged that Live Ventures had recorded income from a backdated contract, which increased pre-tax income for fiscal 2016 by 20%, and understated its outstanding share count, which overstated earnings per share by 40%. The complaint also alleges that the Company’s Chief Executive Officer hired a stock promoter to boost interest in Live Ventures.

On this news, the Company’s share price fell as much as 22% during afterhours trading on August 3, 2021, damaging investors. The Company’s share price fell sharply during intraday trading on August 4, 2021, further damaging investors.

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