MoneyLion Sued by Investors Over Reverse Stock Split Papers (1)

MoneyLion Inc. and its leadership made false statements about a reverse stock split in a recent proxy statement, depriving shareholders of important rights, several investment funds allege.

Their Series A Preferred Stock was converted into common stock, the five funds say on their own behalf, not that of a class. They filed their suit Thursday in the US District Court for the Southern District of New York.

The officer and director defendants all owned MoneyLion common stock, “the value of which was pumped up at the expense of the holders of Series A Preferred Stock,” Canaan X LP and the ...