Articles Posted in Class Action

Revolution Lighting Technologies Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Revolution Lighting Technologies (NASDAQ:RVLT) in connection to alleged violations of securities laws by RVLT. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Revolution Lighting Technologies from March 14, 2014, and November 14.

The class action complaint specifically alleges that during the period in question, RVLT provided false and/or misleading material information and/or failed to disclose adverse material information to the public in connection with its initial public offering, chiefly: that the company was not properly recognizing revenue in connection to certain of its transactions; and that consequently the company’s financial statements contained inaccurate information; that the company did not have proper internal controls governing its financial reporting practices; that this stood to expose the company to scrutiny from regulatory authorities which could lead to significant expenses; and that consequently the company’s statements to the public during the relevant period were misleading. The complaint notes that the company disclosed on October 17, 2018 that its Q3 2018 revenue would be less than its previous guidance had indicated, and that its CEO, Robert LaPenta, was willing to acquire all RVLT common stock for $2.00/share. Following this announcement, RVLT declined in value more than 38%, or $0.98/share, closing at $1.58/share on that day and causing investors to suffer losses. Two days later, on October 19, 2018, Revolution Lightning announced the existence of an SEC probe into its revenue recognition for transactions that took place from 2014 through Q2 2018, after which RVLT declined in value by more than 10%, or $0.16/share, closing at $1.43/share on October 22, 2018, causing additional harm to investors. When the company disclosed, on November 14th, 2018, that its CEO had offered to acquire all remaining outstanding RVLT common stock at a price of $1.50/share, partially in connection with the SEC probe, RVLT declined in value by almost 40%, or $0.55/share, closing at $0.85/share on November 15, 2018.

According to the company’s website, Revolution Lighting Technologies “is a leader in the design, manufacture, marketing, and sale of LED lighting solutions focusing on the industrial, commercial and government markets in the United States, Canada, and internationally.” The company offers a “comprehensive advanced product platform” using what it describes as “advanced” technologies, and is involved in the design, engineering and manufacturing of interior and exterior lighting products. It trades on the Nasdaq exchange under the symbol RVLT.

Lexicon Pharmaceuticals Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Lexicon Pharmaceuticals (NASDAQ:LXRX) in connection to alleged violations of securities laws by LXRX. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Lexicon Pharmaceuticals from March 11, 2016 until January 17, 2019.

The class action complaint specifically alleges that during the period in question, LXRX provided false and/or misleading material information and/or failed to disclose adverse material information to the public in connection with its initial public offering, chiefly: that in connection with the company’s Phase III clinical trials for the product Sotagliflozin, which it was developing in collaboration with the pharmaceutical company Sanofi, data generated regarding the product’s safety and efficacy were less positive than the company had indicated; that in fact the product posed risks to consumer health substantial enough to jeopardize its chances of receiving approval by the FDA; and that consequently the company’s statements to the public during the relevant period were false and misleading. When the company disclosed on January 17, 2019 that an FDA advisory committee “voted eight to eight on the question of whether the overall benefits of [Lexicon’s product] Zynquista (sotagliflozin) outweighed the risks to support approval,” its stock price declined in value by 22.6%, or $1.74/share, and closed at $5.96/share on the following day.

According to the company’s website, Lexicon Pharmaceuticals is “a fully integrated biopharmaceutical company that is applying a unique approach to gene science based on Nobel Prize-winning technology to discover and develop precise medicines for people with serious, chronic conditions.” It operated a program called the Genome5000 Program, according to its description, in which the company’s scientists studied “nearly 5,000 genes” to identify targets for drug development. Its describes its passion as “to bring medicines to the market that have the potential to improve the standard of care for diseases that have not experienced new treatment innovation in years,” rather than focusing on any single disease or class of patient. The company trades on the Nasdaq exchange under the symbol LXRX.

Tyme TechnologiesPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Tyme Technologies (NASDAQ:TYME) in connection to alleged violations of securities laws by TYME. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Tyme Technologies between March 14, 2018 and January 18, 2019.

The class action complaint specifically alleges that during the period in question, TYME provided false and/or misleading material information and/or failed to disclose adverse material information to the public in connection with its initial public offering, chiefly: that the company’s Phase II study regarding its SM-88 product candidate had been improperly designed in such a manner that it would not yield dependable results concerning that treatment’s efficacy in treating pancreatic cancer; that the company had failed in that trial to involve an appropriate control group; that this failure had adverse effects on the reliability of the data yielded by that study; and that consequently the company’s statements to the public during the relevant period were false and misleading. The complaint alleges that when the company reported that study’s results on January 18, 2019, and noted that the trial did not involve a control group and instead compared the results to historical controls, the study’s failure to include a control group was pointed out by analysts and the company’s stock price declined 35.39% or $1.32/share, closing at $2.41/share on that day. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, Tyme Technologies “a clinical-stage biotechnology company developing cancer therapeutics that are intended to be broadly effective across a range of tumor types, while maintaining patient’s quality of life with relatively low toxicity profiles.” According to its description, its approach differs from other companies whose products seek to “regulate specific pathways within cancer,” instead attempting to exploit “a cancer cell’s innate metabolic requirements to compromise its defenses.” The company collaborates with medical research bodies like Mount Sinai and the mayo Clinic, it notes, and its chief clinical program at the moment is SM-88, “an oral amino acid-based therapy” which is in Phase II development for the treatment of prostrate and pancreatic cancers, according to the description. The company trades on the Nasdaq exchange under the symbol TYME.

Liberty Health SciencesPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Liberty Health Sciences (OTC:LHSIF) in connection to alleged violations of securities laws by LHSIF. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Liberty Health Sciences between June 28, 2018 and December 3, 2018.

The class action complaint specifically alleges that during the period in question, LHSIF provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly:that the company was participating in a scheme with Aphria Inc. that involvement the execution of fraudulent transactions and acquisitions for the purpose of benefiting certain individuals within the companies’ to the detriment of their investors; and that consequently the company’s statements to the public during the relevant period were false and misleading and/or had no reasonable basis. The complaint alleges that when true details emerged in the form of a December 3, 2018 report stating that Aphria was participating in the acquisition of certain shell companies at prices that were artificially inflated, and a December 6, 2018 report connecting LHSIF to those activities, investors suffered losses.

According to the company’s website, Liberty Health Sciences “provides investors with access to the growing United States cannabis market.” It notes that the cannabis market is the “fastest growing industry in the United States” and that medical cannabis sales are projected to grow from $4.7 billion in 2016 to $13.3 billion in 2020, with adult recreation sales expected to rise from $2.6 billion to $11.2 billion. The company’s products include Balanced Capsules, Balance Oral Spray, vaporizer units and cartridges, and CBD oils. It trades over the counter under the symbol LHSIF.

Yangtze River Port and LogisticsPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Yangtze River Port and Logistics (NASDAQ:YRCW) in connection to alleged violations of securities laws by YRIV. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Yangtze River Port and Logistics between February 2, 2016 and December 5, 2018.

The class action complaint specifically alleges that during the period in question, YRIV provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the company’s primary asset, a lease of the Wuhan Yangtze River Newport Logistics Center, was fabricated; that the company’s lone subsidiary in operation, Wuhan Yangtze River Newport Logistics Company, had been deemed insolvent in China as a result of default judgments rendered against it; and that consequently the company’s statements to the public during the relevant period about its business, operations and prospects were false and misleading and/or had no reasonable basis. The complaint alleges that when true facts emerged in a December 6, 2018 report by Hindenburg Research stating that “evidence shows that YRIV’s claim to its main asset is likely fabricated,” investors suffered losses.

According to the company’s website, Yangtze River Port and Logistics is “a Nevada corporation that operates through its wholly-owned subsidiary, Wuhan Yangtze River Newport Logistics Co., Ltd., a non-state-owned logistics and port management company focused on helping its clients from all over the world, enter Wuhan Yangluo Comprehensive Bonded Area and Pilot Free Trade Area.” It provides that service, according to the description, by offering “a range of services” that include office space, logistics, waterways, railways, road transportation, storage, processing, and logistics finance. The company trades on the Nasdaq exchange under the symbol YRIV.

YRC Worldwide

Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in YRC Worldwide (NASDAQ:YRCW) in connection to alleged violations of securities laws by YRCW. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in YRC Worldwide between March 10, 2014 and December 14, 2018.

The class action complaint specifically alleges that during the period in question, YRCW provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the company made systematic overcharges of the US federal government for certain freight carrier services starting in 2005 and extending until at least 2013; that as a result of these alleged overcharges, the federal government (and specifically the Department of Defense) made overpayments of millions of dollars for lighter shipments than the government was charged for; that such conduct, if true and discovered, would subject the company to heightened scrutiny from federal and regulatory authorities, and potentially subject it to significant liabilities; and that consequently the company’s statements to the public during the relevant period were false and misleading. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, YRC Worldwide is “the holding company for a portfolio of successful brands including YRC Freight, YRC Reimer, New Penn, Holland and Reddaway.” Per that description, YRC’s companies operate the “largest, most comprehensive network in America,” boasting capabilities at the local, regional, national and international levels. Its logistics units “offer industry-leading expertise in heavyweight shipments and flexible supply chain solutions.” The company is headquartered in Overland Park, Kansas and trades on the Nasdaq exchange under the symbol YRCW.

Nova Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Nova LifeStyle (NASDAQ:NVFY) in connection to alleged violations of securities laws by NVFY. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Nova LifeStyle between December 3, 2015 and December 20, 2018.

The class action complaint specifically alleges that during the period in question, NVFY provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the company made overstatements regarding what it described as a “strategic alliance” with Shanxi Wanqing in which it would function as the lead manufacturer and designer of furnishings for the senior care center that company was developing in China; that NVFY made overstatements of its reported sales with Merlino Lewis LLP and Shanxi Wangqing in both 2016 and 2017; and that consequently the company’s statements to the public during the relevant period were materially false and misleading. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, Nova LifeStyle is a design and manufacturing company headquartered in California and involved in the design of “sofas, dining room sets, cabinets, office furniture and related components, bedroom sets, and various accessories in matching collections.” The company’s products are manufactured in Europe, Asia, and the United States; they include lifestyle brands such as Nova QwiK, Bright Swallow International, and Diamond Sofa. According to the company’s description, it features “urban contemporary styles that integrate comfort and functionality incorporating upscale luxury designs appealing to style-conscious middle and upper middle-income consumers in the U.S., China, Europe, and elsewhere in the world.” The company trades on the Nasdaq exchange under the symbol NVFY.

YogaWorksPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in YogaWorks (NASDAQ:YOGA) in connection to alleged violations of securities laws by YOGA. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in YogaWorks between August 7, 2017 and December 27, 2018.

The class action complaint specifically alleges that during the period in question, YOGA provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly concerning: that the company’s internal economics at its studio level as well as negative market trends relating to the falling profitability of its studios; various causes of its falling revenue, such as growing overhead costs at the corporate level; the company’s infrastructure costs at its corporate level; and the company’s incapacity to reach economies of scale. Among other things, the complaint notes that the company conducted its initial public offering on or around August 11, 2017, during which it issued about 7.3 million shares of common stock at a price of $5.50/share. About one year later, on August 14, 2018, the company issued reports regarding its financial and operating results for Q2 2018, and during a conference call disclosed that it had lowered certain guidance concerning the midpoint of earnings before interest, taxes, depreciation and amortization by about $2.5 million. It attributed this to certain changes in promotion, training initiatives, and brand building initiatives. At this time, the company also announced that it would be moving from an acquisition strategy to a refined focus on its core business activities and increasing profitability.

According to the company’s website, YogaWorks is a “healthy lifestyle brand that enriches and transforms lives through the joy of yoga.” It offers classes in a diversity of yoga styles, with a faculty roster that includes senior instructors who have “honed their craft for at least 20 years.” The company caters to beginners and experienced students alike, including children, athletes, seniors and “people in need of rehabilitation,” according to its website. The company trades on the Nasdaq exchange under the symbol YOGA.

Nobilis HealthPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Nobilis Health (NYSE:HLTH) in connection to alleged violations of securities laws by HLTH. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Nobilis Health between May 8, 2018 and November 15, 2018.

The class action complaint specifically alleges that during the period in question, HLTH provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: the company’s accounts receivable data was overstated; the company’s revenue data was overstated; that adjustments necessary to address these overstatements would result in the delayed filing of the company’s quarterly report; that the company would be in non-compliance with listing requirements of the New York Stock Exchange; and that as a result of all of the above, the company’s statements regarding its business, operations and prospects had no material basis and/or were false and misleading.

According to the company’s website, Nobilis Health is a “full-service healthcare development and management company, with more than 30 locations across Texas and Arizona, including hospitals, ambulatory surgery centers, and multi-specialty clinics.” It was founded in 2007 and partners with over 30 facilities around the United States. According to its description, it markets “nine independent brands” and “deploys a unique patient acquisition strategy driven by proprietary, direct-to-consumer marketing technology, focusing on a specified set of procedures that are performed at our centers by local physicians.” The company’s partners include specialized fellowship-trained surgeons with a focus on “minimally invasive surgery,” and the company’s mission is to provide superior “medical care and increased patient satisfaction.” Its physicians use modern technology and specialized staff, enjoying “increased patient flow” as a result of its marketing campaigns. The company trades on the New York Stock Exchange under the symbol HLTH.

Aphria Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Cheetah Mobile (NYSE:APHA) in connection to alleged violations of securities laws by APHA. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Aphria between July 17, 2018 and October 24, 2018.

The class action complaint specifically alleges that during the period in question, APHA might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that certain assets recently purchased by the company in Latin America did not have proper licensure and had been overvalued; that the company’s acquisition of these assets stood to enrich APHA’s chief executive officer as well as others within the company to the detriment of its shareholders; and that consequently the company’s statements about its business, operations and prospects were false and misleading and/or had no reasonable basis. The complaint alleges that when true facts emerged in the form of a December 3, 2018 article by Hindenburg Research, alleging that the company “is part of a scheme orchestrated by a network of insiders to divert funds away from shareholders into their own pockets,” the company’s share price declined in value $1.85/share, or roughly 23.4%, closing at $6.05/share on that day.

According to the company’s website, Aphria is a public licensed medical cannabis producer, and the first such producer “to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.” The company is headquartered in Leamington, Ontario with operations in British Columbia, Jamaica, Denmark, Germany, Italy, Malta, Colombia, Australia, and Argentina. It trades under the symbol APHA.