Archives: Cases

According to the Complaint, the Company made false and misleading statements to the market. Valaris suffered from serious weakness in its ultra-deepwater segment, heavy cash expenditures, and negative cash flow. These negative factors were likely to impact the Company’s second quarter 2019 results. The merger that resulted in the creation of Valaris had no ability to deliver on its promises of efficiencies and improvements. 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 Valaris, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Myriad failed to gather evidence to demonstrate benefits of GeneSight testing. The FDA requested changes to GeneSight and questioned its value. The Company engaged in ongoing discussions with the FDA about these changes. Myriad’s acquisition of Counsyl led to a material negative impact on the Company’s revenue. 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 Myriad, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Farfetch failed to disclose that online wholesale operations were likely to lead to pricing volatility of luxury goods. In fact, the Company’s core operations were susceptible to pricing pressures. The Company resorted to aggressive acquisitions to maintain profitability. 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 Farfetch, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Granite took on various risks associated with bids for heavy civil joint venture projects between 2012 and 2014. The distribution of risk between the Company and the joint venture project partners was unbalanced to the point of being “untenable.” Based on the imbalance of risk, the Company was likely to incur both additional project costs and dispute costs. Based on the facts the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Granite, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Merit Medical’s integration of Cianna and Vascular Insights were months behind schedule, suffering from operational disruptions and reduced sales. The acquired companies had filled their pipeline before the merger to the extent that 2019 sales slowed substantially. The Company’s financial guidance for 2019 and 2020 did not have a solid basis in fact due to these problems. 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 Merit Medical, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Evolent’s partnership model was built from the ground up to inflate the Company’s revenue with huge fees and management expenses siphoned from operating partners including Passport. The partnership between Passport and Evolent quickly became unsustainable, especially when combined with complicating factors for Passport’s operations in Kentucky. Passport was left on the brink of insolvency due to the Company draining it of employees and money. In fact, Passport was selling itself off in a bidding process to avoid insolvency. 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 Evolent, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. LogMeIn had no intention of offering an optional transition to the Company’s prepaid annual model for subscribers of Citrix’s GoToMeeting acquired with GetGo. The Company planned to force these customers into converting to annual contracts at higher prices and with more restrictions. This aggressive plan created a significant risk of increasing customer friction and churn following the acquisition, while also making customers likely to cancel their subscriptions at the end of their contracts. Based on these facts, the Company’s Registration Statement was false and materially misleading. When the market learned the truth about LogMeIn, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Abiomed suffered from declining revenue growth. The Company failed to develop a sufficient plan to rebuild its revenue growth. The Company did not have good prospects to increase its revenue growth over the next several fiscal quarters, leaving it likely to be forced to revise down its fiscal year 2020 guidance. 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 Abiomed, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Canada Goose sourced the down and fur materials in its products using inhumane treatment of animals. This unethical treatment of animals was not in compliance with FTC regulations on false advertising specifically on the Company’s sourcing practices. These improper actions resulted in an ongoing FTC investigation into the Company for false advertising. 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 Canada Goose, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Carbonite’s Server Backup VM Edition product suffered from deep quality flaws and poor technology. The Company received many negative reviews of the product from its customers. The product was so flawed that it acted as a “disruptive” factor amongst Carbonite’s sales force, constraining salespeople from closing several large deals in fiscal year 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 Carbonite, investors suffered damages.