Colony Capital, Inc.

According to the Complaint, the Company made false and misleading statements to the market. Colony’s sale of its real estate portfolio and the splitting apart of Colony Credit Real Estate’s portfolio were likely to negatively impact the Company’s financial results. The Company’s remaining portfolio companies carried unsustainably high levels of debt secured by healthcare and hotel properties and were at a significant risk of default. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Colony, investors suffered damages.

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Sorrento Therapeutics, Inc.

According to the Complaint, the Company made false and misleading statements to the market. Sorrento announced an initial finding of “100% inhibition” of an in vitro virus infection, but this finding will not necessarily translate to safety or success in person or in vivo. The Company did not find a “cure” for COVID-19. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Sorrento, investors suffered damages.

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CytomX Therapeutics, Inc.

According to the Complaint, the Company made false and misleading statements to the market. CytomX minimized problems with its drug candidate CX-072’s efficacy as documented in its PROCLAIM-CX-072 clinical program. The Company also downplayed CX-2009’s efficacy and safety problems as observed in the PROCLAIM-CX-2009 clinical program. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about CytomX, investors suffered damages.

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Elanco Animal Health Incorporated

According to the Complaint, the Company made false and misleading statements to the market. Elanco consolidated its distributors from eight different organizations to four, and then increased the amount of inventory held by each distributor. These distributors did not demonstrate a sufficient level of demand to sell through the increased inventory, leading to both a decline in inventory and the Company reducing its channel inventory.  Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Elanco, investors suffered damages.

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Ryder System, Inc.

According to the Complaint, the Company made false and misleading statements to the market. Ryder engaged in a pattern of overstating the residual value of its vehicles, which in turn inflated its financial results. The Company lacked any basis for the belief that its vehicles would sell for the values it assigned to them. The Company overstated these vehicles to such a degree that it was forced to take a $357 million depreciation charge related to the reduction of residual values in 2019. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Ryder, investors suffered damages.

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Conn’s, Inc.

According to the Complaint, the Company made false and misleading statements to the market. Conn’s suffered from an increase in first payment defaults and 60-plus day delinquencies. The Company was likely to be forced to record an increase to its provision for bad debts based on these defaults and delinquencies. The Company made underwriting adjustments to tighten its standards for new customers, and these adjustments were negatively impacted. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Conn’s, investors suffered damages.

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Hamilton Beach Brands Holding Company

According to the Complaint, the Company made false and misleading statements to the market. Hamilton Beach failed to maintain appropriate controls on disclosures and financial reporting, especially with its Mexican subsidiary. The Company’s accounting included irregularities with respect to the timing of revenue recognition and the classification of expenses by its Mexican subsidiary. The irregularities extended to potential misconduct related to the realizability of the Mexican subsidiary’s assets. Based on these accounting issues, the Company could not attest to the accuracy of its financial statements. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Hamilton Beach, investors suffered damages.

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Hallmark Financial Services, Inc.

According to the Complaint, the Company made false and misleading statements to the market. Hallmark Financial failed to maintain appropriate internal controls over accounting and financial reporting, specifically over reserves for unpaid losses. The Company’s accounting unpaid losses and loss adjustment expenses were improper and ineffective. This resulted in the Company being forced to report a $63.8 million loss development for prior underwriting years. Ultimately, the Company withdrew from its Binding Primary Commercial Auto business, which was the primary source of the improper accounting. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Hallmark Financial, investors suffered damages.

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Carnival Corporation & Plc

According to the Complaint, the Company made false and misleading statements to the market. Carnival’s medics had reported an increasing number of COVID-19 cases on its fleet of ships. The Company violated port of call regulations by concealing both the number and severity of COVID-19 infections on its ships. The Company failed to follow its own protocols on health and safety that were developed following disease outbreaks in the past. The Company was responsible for spreading COVID-19 to multiple international ports by continuing to operate. Based on these facts, the Company’s public statements were false and materially misleading. When the market learned the truth about Carnival, investors suffered damages.

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SCWorx Corp.

According to the Complaint, the Company made false and misleading statements to the market. SCWorx’s supplier for COVID-19 test kits was known to have misrepresented its operations in the past. The Company’s buyer was a small organization unlikely to be able to support a large volume of COVID-19 tests. In fact, the Company’s purchase order for COVID-19 tests was either overstated or completely fabricated. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about SCWorx, investors suffered damages.

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