AKAZOO UPDATE: Special Committee Determines Former Management Defrauded Investors; Investors Who Have Lost Money Should Contact Block & Leviton LLP

BOSTON, May 22, 2020 (GLOBE NEWSWIRE) -- On May 21, 2020, Akazoo's SONG Special Committee of independent directors announced that it had "substantially completed its investigation and determined that former members of Akazoo's management team and associates defrauded Akazoo's investors . . . by materially misrepresenting Akazoo's business, operations, and financial results as part of a multi-year fraud." Trading of Akazoo's stock has been suspended since May 1, at just $1.16 per share. Shareholders who have lost money should contact Block & Leviton for a free case evaluation.

Back on April 20, 2020, Quintessential Capital gave a presentation concerning Akazoo, stating that the Company looks like an accounting scheme because its users, subscribers, revenue, and profit may be "profoundly overstated."  Quintessential Capital further stated "[w]e believe Akazoo is a scheme orchestrated by management to profit while egregiously deceiving investors."  On this news, Akazoo's share price plummeted over 26% during intraday trading.

On April 22, 2020, Akazoo issued a press release announcing that its Board of Directors formed a special committee to investigate the allegations raised by Quintessential Capital's report, and that the special committee has retained Latham & Watkins LLP as its legal counsel.  On this news, the stock dropped approximately 15%.

On May 1, 2020, Akazoo's Board of Directors announced that it terminated Akazoo's CEO, Apostolos N. Zervos, as CEO "for cause."  The Board took this step "at the recommendation of the special committee of independent directors" who "found evidence of conduct that the Special Committee believed was inconsistent with the Company's policies, including a lack of cooperation with the investigation."

If you purchased or acquired shares of Akazoo and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockesq.com, or at https://shareholder.law/akazoo. An existing case against Akazoo is on file, and the deadline to move to serve as a lead plaintiff is June 23, 2020.

Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country's financial markets.  The firm represents many of the nation's largest institutional investors as well as individual investors in securities litigation throughout the United States.  The firm's lawyers have recovered billions of dollars for its clients.

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