Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number: 3235-0287
Expires: January 31, 2005
Estimated average burden hours per response... 0.5

(Print or Type Responses)
1. Name and Address of Reporting Person *
CLOUGH PHILLIP A
   2. Issuer Name and Ticker or Trading Symbol
LIQUIDITY SERVICES INC [LQDT] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
400 EAST PRATT STREET, SUITE 910		 3. Date of Earliest Transaction (Month/Day/Year)
05/05/2011
(Street)

BALTIMORE, MD 21202-3116		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 05/05/2011   S(1)   17,700 (2) D $ 19.53 1,194,251 (3) I See footnote (4)
Common Stock 05/05/2011   J(5)   650,000 (6) D (5) 544,251 (7) I See footnote (4)
Common Stock               17,740 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1474 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option $ 12.89               (8) 04/03/2016 Common Stock 20,000   20,000 D  
Employee Stock Option $ 14.75               (9) 10/02/2016 Common Stock 9,393   9,393 D  
Employee Stock Option $ 11.19               (10) 10/01/2017 Common Stock 8,560   8,560 D  
Employee Stock Option $ 11.66               (11) 06/03/2018 Common Stock 15,082   15,082 D  
Employee Stock Option $ 8.55               (12) 04/28/2019 Common Stock 21,086   21,086 D  
Employee Stock Option $ 10.7               (13) 02/01/2020 Common Stock 18,612   18,612 D  
Employee Stock Option $ 14.3               (14) 02/01/2021 Common Stock 15,012   15,012 D  
Restricted Stock Grant $ 14.3               (15) 02/01/2021 Common Stock 2,517   2,517 D  
Restricted Stock Grant $ 14.3               (16) 02/01/2021 Common Stock 2,098   2,098 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
CLOUGH PHILLIP A
400 EAST PRATT STREET, SUITE 910
BALTIMORE, MD 21202-3116		   X      

Signatures

 /s/ James E. Williams, by power of attorney   05/09/2011
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The transactions in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on December 10, 2010.
(2) Consists of the following shares sold by the following entities: (a) 15,555 shares by ABS Capital Partners VI, LP ("ABS VI"), (b) 296 shares by ABS Capital Partners VI-A, LP ("ABS VI-A"), and (c) 1,849 shares by ABS Capital Partners VI Offshore, LP ("ABS Capital Partners VI Offshore" and together with ABS VI and ABS VI-A, the "ABS Entities"). ABS Partners VI, LLC is the general partner of the ABS Entities and has voting and dispositive powers over these shares. The address for these entities affiliated with ABS Capital Partners is 400 East Pratt Street, Suite 910, Baltimore, MD 21202-3116.
(3) Consists of the following shares held by the following entities: (a) 1,049,511 shares by ABS Capital Partners VI, LP ("ABS VI"), (b) 19,994 shares by ABS Capital Partners VI-A, LP ("ABS VI-A"), and (c) 124,746 shares by ABS Capital Partners VI Offshore, LP ("ABS Capital Partners VI Offshore" and together with ABS VI and ABS VI-A, the "ABS Entities"). ABS Partners VI, LLC is the general partner of the ABS Entities and has voting and dispositive powers over these shares. The address for these entities affiliated with ABS Capital Partners is 400 East Pratt Street, Suite 910, Baltimore, MD 21202-3116.
(4) Mr. Phillip Clough is a managing member of the ABS Partners VI, LLC, the general partner of the ABS Entities. Mr. Clough disclaims beneficial ownership of these shares except to the extent of his pecuniary interest. The address for these entities affiliated with ABS Capital Partners is 400 East Pratt Street, Suite 910, Baltimore, MD 21202-3116.
(5) Distribution of portfolio securities was made for no consideration to the managing members of ABS Partners VI, LLC, the general partner of the ABS Entities.
(6) Consists of the following shares distributed by the following entities: (a) 576,164 shares by ABS Capital Partners VI, LP ("ABS VI"), (b) 10,198 shares by ABS Capital Partners VI-A, LP ("ABS VI-A"), and (c) 63,638 shares by ABS Capital Partners VI Offshore, LP ("ABS Capital Partners VI Offshore" and together with ABS VI and ABS VI-A, the "ABS Entities"). ABS Partners VI, LLC is the general partner of the ABS Entities and has voting and dispositive powers over these shares. The address for these entities affiliated with ABS Capital Partners is 400 East Pratt Street, Suite 910, Baltimore, MD 21202-3116.
(7) Consists of the following shares held by the following entities: (a) 473,347 shares by ABS Capital Partners VI, LP ("ABS VI"), (b) 9,796 shares by ABS Capital Partners VI-A, LP ("ABS VI-A"), and (c) 61,108 shares by ABS Capital Partners VI Offshore, LP ("ABS Capital Partners VI Offshore" and together with ABS VI and ABS VI-A, the "ABS Entities"). ABS Partners VI, LLC is the general partner of the ABS Entities and has voting and dispositive powers over these shares. The address for these entities affiliated with ABS Capital Partners is 400 East Pratt Street, Suite 910, Baltimore, MD 21202-3116.
(8) These options became fully vested on April 3, 2008.
(9) These options became fully vested on October 2, 2007.
(10) These options became fully vested on October 1, 2008.
(11) These options became fully vested on April 29, 2009.
(12) These options became fully vested on February 18, 2010.
(13) These options became fully vested on February 1, 2011.
(14) These options have a one-year vesting period such that 100% of this option grant will vest on February 1, 2012.
(15) These restricted shares have a one-year vesting period such that 100% of this restricted share grant will vest on February 1, 2012.
(16) These restricted shares have a one-year vesting period such that 100% of this restricted share grant will vest on February 1, 2012.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.