Type: Securities Fraud Investigation

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. LifeStance is the subject of a report published by Hindenburg Research on February 1, 2024, titled: “LifeStance: A Private Equity-Backed Mental Health Rollup Headed For A Breakdown.” According to the report, “Overall, we think LifeStance is a classic example of what happens when private equity meets a ‘hot’ healthcare sector: Massive debt fueling a grinding, metric-focused corporate culture resulting in worse quality of care for patients, a worse environment for clinicians and long-term losses for the average investor.” Based on this report, shares of LifeStance fell by more than 8% in morning trading on the same day.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Allakos is the subject of a report by Zacks Equity Research on January 17, 2024. According to the report, the Company’s shares “plunged 60.2% on Tuesday after management announced disappointing results from two mid-stage studies evaluating its lead pipeline drug lirentelimab (AK002) in two inflammatory conditions.”

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. DocGo is the subject of a report published by Fuzzy Panda Research on January 10, 2024. The report alleges that the Company committed “systematic billing fraud” through forging signatures on documents, fraudulently editing patient records, and billing for tests not performed. Based on this report, shares of DocGo fell by more than 37% on the same day.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Grifols is the subject of a report issued by Gotham City Research on January 9, 2024, titled: “Grifols SA: Scranton and the Undisclosed Debts.” According to the report, the Company “manipulates reported debt & EBITDA to artificially reduce reported leverage to 6x which we believe is closer to 10x-13x.” The report claims, “Should our estimate of the Grifols’ true leverage be correct, GRF will face notably higher financing costs. Consequently, we believe shares are uninvestable, likely zero.”

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Arbor is the subject of a report issued by Viceroy Research November 17, 2023, titled, “”Arbor Realty Trust – Slumlord Millionaires.” According to the report, “Arbor’s high-risk multifamily bridge loans, which comprise substantially all of its asset book, are going bad fast… The end is near.” Viceroy Research then issued a follow up report on December 5, 2023, titled “Arbor – Jacksonville Case Study.” In the second report, Viceroy Research claims that the Company’s “entire loan book is distressed and underlying collateral is vastly overstated.” Based on this news, shares of Arbor fell by more than 5% over the next two trading sessions.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Ventyx is the subject of an article published by STAT on November 6, 2023. According to the article, “Ventyx Biosciences reported on Monday that it was ending development of an experimental drug for treating plaque psoriasis though it proved safe and moderately effective in a mid-stage trial.” Based on this news, shares of Ventyx fell by more than 76% in after hours trading on the same day.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Fox Factory is the subject of a report by Dow Jones published on November 3, 2023, noting that the Company “reported a steep drop in sales due to a glut of bikes in the market and fallout from the auto workers strikes.” Based on this news, shares of Fox Factory fell by more than 30% in intraday trading on the same day.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Astec is the subject of a report by Zacks Equity Research published on November 1, 2023, that notes the Company “came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of $0.64. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.” Based on this report, Shares of Astec fell by more than 22.7% in intraday trading.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Akero is the subject of a report by Investors Business Daily on October 10, 2023. According to the report, the Company’s “liver-disease treatment fell short in a midstage study.” The report continues, “Over 36 weeks, 22% to 24% of patients who received Akero’s drug had at least a one-stage improvement in fibrosis compared to 14% of the placebo group. The result wasn’t statistically significant.” Based on this news, shares of Akero crashed by almost 60% on the same day.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. W.P. Carey was downgraded by BMO Capital on September 26, 2023, with analysts “perplexed” by the Company’s plan to spin off most of its office portfolio into a new REIT. Based on this news, shares of W.P. Carey fell by almost 3.7% on the same day.