A software developer and a recently promoted stock (1), its shares saw a price increase of over 70% between July 25th and July 29th 2019. Their past is a bit colourful, they were subject a stock fraud class action lawsuit (2) which was filed by their shareholders in November 2010 and alleged SMSI had “issued materially false and misleading statements regarding the Company’s business prospects and financial results” .

In addition, some of their shareholders have also held shares in other companies which have been subject to some controversy. Firstly, we have Iroquois Capital Management (who hold 4.99% of the common stock), whose employee Richard K. Abbe is subject to securities fraud lawsuit due to his dealings with XSPA this year (3)… and was also subject to another lawsuit concerning XSPA in 2017, this time for fraudulent takeover (4). Then we have Anson Funds Management who also hold just under 5% of the common stock, and also were/are shareholders in XSPA.

Possibly or possibly not by coincidence, an S3 filed on November 21st 2018 lists both Iroquois and Anson as selling shareholders (5).