Churchill Capital Corp IV

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Churchill Capital and Lucid announced a merger agreement on February 22, 2021. At the time of the merger announcement, it was also disclosed that Lucid was projecting production of just 557 vehicles in 2021, down from the 6,000 vehicles Lucid was projecting before the merger announcement. Based on this news, shares of Churchill Capital fell sharply over the next several months.

-->

Aterian, Inc.

According to the Complaint, the Company made false and misleading statements to the market. Aterian suffered from a steep decline in organic growth. The Company’s recent acquisitions were flawed assets that it overpaid for. Customer interest in the Company’s AI software was low. The Company used rebate programs and paid reviews to bolster their product offerings. 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 Aterian, investors suffered damages.

-->

ContextLogic Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. ContextLogic reported a first-quarter loss of $128 million based on sales of $772 million on May 12, 2021. The Company suffered from a loss in the quarter almost doubled on a year-over-year basis. The prior year’s first-quarter loss of $66 million came on $440 million in sales. Based on this news, shares of ContextLogic dropped in after-hours trading and traded down more than 25% in intraday trading on May 13, 2021.

-->

Array Technologies, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Array missed its first-quarter profit expectations and pulled its full-year outlook back, claiming increases in freight and steel costs. The Company’s net income fell from .61 cents per share a year ago to just .02 cents a share. Based on this news, shares of Array plummeted 46% on Wednesday, May 12, 2021.

-->

Rocket Companies, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Rocket suffered a major drop in its share price after hours on May 5, 2021. The share price slid after it reported that its closed loan origination volume dropped quarter-over-quarter and it forecasted additional declines in the second quarter.

-->

Skillz Inc.

According to the Complaint, the Company made false and misleading statements to the market. The three games that comprised the majority of Skillz’s revenue had suffered from a significant decline. The Company’s financial condition was misrepresented by its revenue recognition policy. The Company’s growth projections, especially in the Android market, were unrealistic. 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 Skillz, investors suffered damages.

-->

PureCycle Technologies, Inc.

According to the Complaint, the Company made false and misleading statements to the market. PureCycle’s management team had previously taken six companies public, each of which imploded shortly thereafter. The Company’s motivation in going public was to secure tens of millions of dollars and tradeable shares whether the deal was favorable or unfavorable. The Company faced intense competition for feedstock which it misled investors about. The Company’s patent did not hold the value it led investors to believe. The Company’s pressurized process was not yet functional at production scale, and remained dangerous. Based on these facts, the Company’s public statements were false and materially misleading throughout the IPO period. When the market learned the truth about PureCycle, investors suffered damages.

-->

ChemoCentryx, Inc.

According to the Complaint, the Company made false and misleading statements to the market. ChemoCentryx designed the study of its Phase III ADVOCATE trial in a manner that presented issues of trial data interpretability to define a clinically meaningful benefit of avacopan. The trial data presented serious safety concerns for avacopan. These problems combined to form a deep concern over the viability of the Company’s New Drug Application (“NDA”) for avacopan for the treatment of ANCA-associated vasculitis. 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 ChemoCentryx, investors suffered damages.

-->

SmileDirectClub, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. SmleDirectClub stated in a regulatory filing that it suffered from a systems outage caused by a “cybersecurity incident” on April 14, 2021. According to the Company, it was able “to successfully block the attack, no ransom was paid, and the Company’s systems and operations are back online and performing normally.” Despite this, the Company admitted that the cyberattack “may have a material impact on its business operations and financial results in the second quarter.” Based on this news, shares of SmileDirectClub plunged by 19%.

-->

Virgin Galactic Holdings, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Virgin Galactic declared in a Current Report on Form 8-K that it will restate its financial results including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The Company disclosed that the restatement involves the accounting treatment for the warrants of Social Capital Hedosophia Holdings Corp. Based on this news, shares of Virgin Galactic dropped by more than 9% on May 3, 2021.

-->