Faruqi and Faruqui, LLP Logo
Share this page

FAB Universal Corporation (FU)



Faruqi & Faruqi, LLP Announces Investigation of FAB Universal Corporation

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud claims on behalf of investors of  FAB Universal Corporation (“FAB” or the “Company”) (NYSE: FU).

The investigation focuses on whether the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and financial performance.

FAB is purportedly a distributor of copyright-protected digital media.  On November 14, 2013, the Alfred Little website published a report that claims that FAB has embellished its financial performance.  The report states in part that: (i) the Company’s “Intelligent Media Kiosks” include pirated U.S. movies, despite claims to the contrary; (ii) FAB’s kiosk manufacturers have acknowledged that they supplied only 10% of the total units the Company claims to have; (iii) one kiosk manufacturer aided in staging a deceptive manufacture site visit for FAB’s investors; (iv) the Company only has about 25% of the total number of kiosks it states operate in Bejiing; and (v) FAB offers to repurchase franchised kiosks using the Company’s common stock.

Take Action

If you lost more than $100,000 investing in FAB stock or options and would like to discuss your legal rights, you can contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com.  Faruqi & Faruqi, LLP also encourages anyone with information regarding FAB’s conduct to contact the firm, including whistleblowers, former employees, shareholders, and others.

Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330


Case Details


  • 11/15/2013

Send Information

If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.