MoneyGram International, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. MoneyGram is the subject of an article published by CoinDesk on February 22, 2021, titled: “MoneyGram Puts Relationship With Ripple’s XRP on Hold.” According to the article, “The money transfer company said Monday it ‘is not planning for any benefit from Ripple market development fees in the first quarter’ of 2021, a break from last year’s Q1 when MoneyGram banked $12.1 million in such fees.” The article continues, “Ripple has been paying MoneyGram to use the XRP token in international settlement since 2019 and first engaging in a pilot agreement with the service in 2018. Since then, MoneyGram has netted $61.5 million in ‘market development fees’ from Ripple.” Based on this news, shares of MoneyGram fell by 33% over the next two trading days.

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AgEagle Aerial Systems, Inc.

According to the Complaint, the Company made false and misleading statements to the market. AgEagle did not have a partnership with Amazon, and had never had a business relationship with the e-commerce giant of any sort. The Company actively contributed to the rumor that it held a partnership with Amazon. 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 AgEagle, investors suffered damages.

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MultiPlan Corporation

According to the Complaint, the Company made false and misleading statements to the market. MultiPlan was losing tens of millions of dollars in sales to NaviGuard, a competitor built by one of its largest customers. NaviGuard threatened 35% of the Company’s sales and 80% of its levered cash flows by 2022. The sales decline leading up to the Merger was not caused by “idiosyncratic” customer behaviors, but by deterioration in demand and increased competition. In fact, the Company was set to face continued troubles including deteriorating pricing dynamics following the Merger. 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 MultiPlan, investors suffered damages.

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Workhorse Group Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Workhorse submitted a bid for the United States Postal Service’s “next generation delivery vehicle” (NGDV) before the July 14, 2020, deadline. In a July 21, 2020 Benzinga article, Workhorse CFO Steve Schrader provided an update on the USPS contract. According to the article, “Schrader said he can’t discuss too much about the process at this point, but Workhorse is the only all-electric option” and Schrader reportedly stated “[w]hat I will say is our all-electric is probably the perfect vehicle for them. . .” On February 23, 2021, the USPS awarded the NGDV contract to Oshkosh Defense, which will produce vehicles that according to the USPS will “be equipped with either fuel-efficient internal combustion engines or battery electric powertrains and can be retrofitted to keep pace with advances in electric vehicle technologies.” Based on this news, shares of Workhorse fell by more than 47% on February 23, 2021.

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Immunovant, Inc.

According to the Complaint, the Company made false and misleading statements to the market. Health Sciences Acquisitions Corporation failed to perform proper due diligence into Immunovant Sciences Ltd. prior to the merger, and ignored or failed to disclose safety problems with IMVT-1401. IMVT-1401 was not as safe as the Company led the market to believe, particularly for the treatment of thyroid eye disease (TED) and warm autoimmune hemolytic anemia (WAIHA). These issues would greatly impact the likelihood of IMVT-1401 securing regulatory approval and commercial viability. 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 Immunovant, investors suffered damages.

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Infinity Q Capital Management LLC

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Infinity Q recently announced that its Chief Investment Officer had made methodology changes for valuing assets held by the fund and that “it was unable to conclude that these adjustments were reasonable, and, further, that [Infinity Q] was unable to verify that the values it had previously determined for the [assets] were reflective of fair value.” The Company sought to suspend redemptions, which the Wall Street Journal notes “suggests severe problems at the firm.”

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Apache Corporation

According to the Complaint, the Company made false and misleading statements to the market. Apache purposefully employed unrealistic assumptions about the amount and composition of oil and gas in Alpine High. The Company failed to build the proper infrastructure to drill and transport oil and gas at Alpine High safely and economically, even if resources existed in the amounts the Company claimed. The Company’s misleading statements artificially inflated the value of its operations in the Permian Basin. 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 Apache, investors suffered damages.

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Velodyne Lidar, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Velodyne announced on February 22, 2021, would be immediately replacing David Hall, the Company’s founder and former Chairman of the Board of Directors, and Marta Thoma Hall, the Company’s former Chief Marketing Officer. The decision follows an investigation by the Audit Committee that “concluded that Mr. Hall and Ms. Hall each behaved inappropriately with regard to certain Board and Company processes, and failed to operate with respect, honesty, integrity, and candor in their dealings with Company officers and directors.” The Company’s Board of Directors formally censured Mr. Hall and Ms. Hall. Based on this news, shares of Velodyne fell by about 15% on the same day.

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Ebix, Inc.

According to the Complaint, the Company made false and misleading statements to the market. Ebix lacked audit evidence to prove legitimate purposes for large and unusual transactions in its India gift card business. The Company suffered from material weaknesses in internal controls over gift cards and prepaid revenue. The Company’s auditor was likely to resign over $30 million put into a trust account commingled with its outside legal counsel. Based on these facts, the Company’s public statements were false and materially misleading. When the market learned the truth about Ebix, investors suffered damages.

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Sonic Automotive, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Sonic is the subject of a report published by Bloomberg on February 18, 2021. In the article titled “CEO Charged With Choking Woman Garners Board Support, Not Rebuke: Governance watchdogs say a firmer response is needed after Sonic Automotive’s David Smith was charged with assaulting a woman,” Bloomberg reported that “barely 24 hours after his release, Sonic’s board — more than a quarter of which is made up of Smith family members, including the CEO’s father and 93-year-old founder O. Bruton Smith — said it believed he was innocent and pledged its ‘steadfast’ support.” Bloomberg added that “Sonic’s ownership structure gives the company more room to shrug off any potential backlash, … The Smith family has about 80% of the voting power despite holding only a third of the shares outstanding because of a dual-class structure with supervoting stock.”

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