Textura To Present In Scottsdale Tomorrow — Wonder If This Item Will Come Up?

The stock was off over four per cent on the NASDAQ, today — closing at $23.11, on heavy volume.

And though the company’s CFO presents after market close tomorrow evening — at the Credit Suisse confab — I’ll bet no one will ask her about any part of this securities litigation, now pending in federal court in Chicago, before the very able Judge Gettleman (Case No. 14-cv-07837, USDC, ND IL).

But someone should. To be fair, these are the allegations of a securities plaintiffs’ law firm. But if Mr. Allin’s ties to these prior allegedly questionable companies were hidden from investors — when and after Textura filed to “go public” with the SEC, that’s troubling.

Even more directly troubling (for the stock price) is the notion that Textura (allegedly) repeatedly overstated both its pricing power, and addressable market — by orders of magnitude, all while various insiders sold shares in the company — i.e., cashed out millions.

In the amended February 17, 2015 securities complaint (which is a public document in the Chicago federal District courthouse), Mr. Allin is alleged to have liquidated over $7 million worth of his equity in the company (one such transaction listed in that last link — but I get his IPO liquidation at a little over $9 million, as I wrote in the first post to this blog in 2013) since the company went public, on the back of an allegedly inflated valuation — one apparently continuously inflated by these allegedly materially false statements.

UPDATED: December 4, 2015 — Here is Textura’s side of the above story.

Pop the popcorn — it might get interesting tomorrow, folks. Trust that we will report, here — if it does.