Archives: Cases

According to the Complaint, the Company made false and misleading statements to the market. Teladoc Health’s CFO and COO, Mark Hirschhorn, carried on an affair with a subordinate. Hirschhorn and his partner in the inappropriate sexual relationship engaged in insider trading to enrich themselves based on stock movement. Hirschhorn also caused the subordinate to receive promotions she was not qualified to receive, harming the Company’s performance. The Company’s internal controls and policies were not sufficient to detect and stop the behavior. 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 Teladoc Health, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Curo Group seriously undermined its financial performance and forward guidance by switching from Single-Pay Loans to Open-End Loans. In fact, the change dramatically diluted its adjusted EBITDA and net revenue. As a result of these changes, the Company’s 2018 full-year guidance and public statements were false and materially misleading throughout the class period. When the market learned the truth about Curo Group, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Liberty Health was involved in a fraudulent scheme with Aphria Inc. in which transactions and acquisitions were completed specifically to provide undue benefits to Company insiders from both parties. Based on this fact, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Liberty Health, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Aphria acquired Latin American assets that both failed to maintain required licenses to operate and were overvalued. These acquisitions enriched the Company’s CEO and other associated parties at the shareholder’s expense. Based on these facts, the Company’s public statements throughout the class period were false and materially misleading. When the market learned the truth about Aphria, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Boeing withheld from the market information about the potential hazards caused by its new flight-control system, which may have contributed to a recent deadly crash in Indonesia. The new automated stall-prevention system allegedly can cause pilots to lose control of the aircraft in certain situations. The pilots of the flight in the Indonesia crash were reportedly not aware that the plane was equipped with the new system, and allegedly not prepared to handle the risk of this occurring. Boeing now faces scrutiny from multiple government and industry officials, including the FAA. Based on these facts, the Company’s public statements throughout the class period were false and materially misleading. When the market learned the truth about Boeing, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Tenaris Chairman and CEO Paolo Rocca had knowledge of his company’s executives paying cash bribes to officials between 2009 to 2012 to speed up payments related to the sale of the Sidor division. The cash bribes resulted in Rocca faces charges for a graft scheme. 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 Tenaris, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Paolo Rocca, Ternium’s Chairman, was aware that his executives paid cash bribes to government officials in order to speed up payments for the sale of the Company’s Sidor business. This activity would lead Rocca to face charges related to the graft scheme, and Ternium to face heightened scrutiny from regulatory agencies and government organizations. 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 Ternium, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Welbilt failed to maintain effective controls on financial reporting. The Company made errors related to the tax basis of foreign subsidiaries, and treatment of those subsidiary’s intangible assets. 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 Welbilt, investors suffered damages.

According to the Complaint, the Company made false and misleading statements to the market. Altice’s Offering Documents outlined “The Altice Way”, the Company’s growth model developed in Europe, falsely touting the model’s ability to succeed in an extremely competitive business landscape. The Company was facing extreme competitive pressure, impacting market share and both revenue and profits. Altice specifically poor management and regulatory compliance throughout multiple European markets. All of these factors contributed to an inability to replicate “The Altice Way” in the United States. 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 Altice, investors suffered damages.