Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against IZEA, Inc. (IZEA)

NEW YORK, April 06, 2018 -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against IZEA, Inc. (“IZEA” or the “Company”) (Nasdaq:IZEA) in the United States District Court for the Central District of California on behalf of a class consisting of investors who purchased or otherwise acquired IZEA securities on the open market from May 15, 2015 and April 3, 2018, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) IZEA was misreporting revenue from the Company’s Content Workflow services as gross amounts billed to marketers instead of on a net transaction basis; (2) the amount IZEA previously reported as gross profit on Content Workflow should be the amount reported as revenue; (3) IZEA lacked adequate internal controls; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the June 4, 2018 lead plaintiff motion deadline.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].

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