Articles Posted in Class Action

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Namaste TechnologiesPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Namaste Technologies (OTC:NXTTF) in connection to alleged violations of securities laws by NXTTF. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Namaste Technologies between November 29, 2017 and October 4, 2018.

The class action complaint specifically alleges that during the period in question, NXTTF might have provided false and/or misleading material information, and/or failed to disclose adverse material information, chiefly: that the company sold its US-based subsidiary, which was wholly owned by Namaste, to its own executives; that as a result, the company’s sale of its subsidiary was not made in an arm’s length transaction; and that consequently the company’s statements to the public during the relevant period about its business, operations and prospects were false and/or misleading and/or had no reasonable basis. A Citron Research report published on October 4, 2018 stated that the company’s CEO stated the asset was sold to “an arm’s length party” when in fact it was sold to the company’s own executives, and additionally that the company “lied to its shareholders, Canadian Regulators, US Regulators; and most of all has attempted to hide US assets from the Justice Department in an attempt to obtain a US listing.” This publication was followed by the company’s stock declining more than 10%, or $0.19/share, over two trading days, closing at $1.62/share on October 5th. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, Namaste Technologies is is “a worldwide collective of industry experts focused on providing the best cannabis-related products & services available.” Continuing, its description states that Namaste was originally an “international cannabis eCommerce company” that operated in 20 countries, and is currently in the “final stage” of applying for licensing in Canada. It is also developing a “secure telemedicine portal,” Namaste MD, which it says will connect physicians with patients who use medical marijuana. The company trades over-the-counter under the symbol NXTTF.

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TG TherapeuticsPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in TG Therapeutics (NASDAQ:TGTX) in connection to alleged violations of securities laws by TGTX. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in TG Therapeutics between June 4, 2018 and September 25, 2018.

The class action complaint specifically alleges that during the period in question, TGTX might have provided false and/or misleading material information, and/or failed to disclose adverse material information, chiefly: that the company participated in a data cleaning process which provided insight into its UNITY-CLL trial; that the data cleaning revealed to the company that the trial had not met its goal, and that consequently the company knew it would not be able to pursue expedited approval for the therapy; that consequently it was unlikely that the therapy would meet its primary endpoint; and that as a result the company’s statements to the public during the relevant period were false and misleading. On September 25, 2018, the company announced that that the UNITY-CLL study had not met its goal, and that the Data Safety Monitoring Board was unable to complete an analysis of the study’s data. After this revelation, the company’s stock price fell $4.10/share, more than 44%, and closed at $5.15/share on that day. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, TG Therapeutics is a biopharmaceutical firm involved in acquiring, developing and commercializing treatments for “B-cell malignancies and autoimmune diseases.” Current therapies in development include TG-1101, “a novel, glycoengineered monoclonal antibody that targets a specific and unique epitope on the CD20 antigen found on mature B-lymphocytes,” and TGR-1202, “an orally available PI3K delta inhibitor for various hematologic malignancies.” Based in New York City, the company trades on the Nasdaq exchange under the symbol TGTX.

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MGT CapitalPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in MGT Capital Investments (OTC:MGTI) in connection to alleged violations of securities laws by MGTI. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in MGT Capital Investments between October 9, 2015 and September 7, 2018.

The class action complaint specifically alleges that during the period in question, MGTI might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company participated in a pump-and-dump scheme designed to artificially increase the value of its stock; that as a result of this scheme, the company made false and misleading statements that led to regulatory attention; that certain individuals implicated in the pump-and-dump scheme had control of the company and its managers; that the scheme would eventually lead to the company’s stock being delisted from the New York Stock Exchange MKT; and that consequently the company’s statements about its business, operations and prospects during the relevant period were false and misleading. In September 2016, MGTI revealed its receipt of an SEC subpoena requesting information about the company; this led to the broader revelation that MGT Capital Investments had been part of a pump-and-dump scheme. On September 7, 2018 the SEC disclosed that it had filed a complaint against the scheme’s alleged perpetrators, including MGT’s involvement. After the SEC announced its charges, MGT’s stock declined more than 90%, closing at $0.395/share on September 20, 2018. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, MGT Capital Investments is involved in Bitcoin mining, which it describes as “when miners purchase powerful computing chips designed solely to solve the blocks which reward Bitcoins.” It trades over the counter under the symbol MGTI.

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Gogo Inc.Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Gogo Inc. (NASDAQ:GOGO) in connection to alleged violations of securities laws by GOGO. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Gogo Inc. from February 27, 2017 until May 7, 2018.

The class action complaint specifically alleges that during the period in question, GOGO might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that the company’s 2Ku antenna was experiencing a greater number of reliability issues than had been previously represented to the public; that the antennas needed expensive installation and remediation challenges, or they otherwise needed to be replaced as a result of infiltration by aircraft deicing fluids and other concerns relating to the antennas’ manufacturing and software; that as a result of the foregoing, the company would not meet its previously issued guidance for 2018; and that consequently the company’s financial statements during the relevant period were false and misleading. The complaint alleges that when true details emerged, investors suffered losses.

According to the company’s website, Gogo Inc. is “the leading global provider of in-flight broadband connectivity and connectivity-enabled services to commercial and business aviation.” It provides aircraft operates with internet services for passengers and crew, servicing more than 3,000 commercial aircraft and 4,200 buesiness aircraft, according to its description, which states that the company also has obtained “awards to install our latest generation global satellite solution, 2Ku, on approximately 1,500 commercial aircraft (of which approximately 130 have been installed).” The company trades on the Nasdaq exchange under the symbol GOGO.

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Gridsum Holding

Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Gridsum Holding (NASDAQ:GSUM) in connection to alleged violations of securities laws by GSUM. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Gridsum Holding between April 27, 2017 and April 20, 2018.

The class action complaint specifically alleges that during the period in question, GSUM might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the company did not have adequate internal controls over its financial reporting practices; that consequently the company’s financial statements contained misleading information and inaccuracies, and did not fairly present the company’s financial condition or the results of the company’s operations; and that consequently the company’s statements to the public during the relevant period were materially false and/or misleading. In a press release published on April 23, 2018, the company announced that its audit report for financial statements for the year ending December 31, 2016 “should no longer be relied upon.” The announcement stated further that its auditor had found issues connected to “certain revenue recognition, cash flow, cost, expense items, and their underlying documentation” while conducting its audit of the company’s financial results for the year ending December 31, 2017. After this news was announced, the company’s ADR price declined 16.04%, or $1.17, closing at $6.12/share on April 23, 2018. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, Gridsum Holding is a “leading provider of cloud-based big data analytics and AI solutions” for global and domestic companies, as well as government agencies, in China. Its core technology is the Gridsum Big Data Platform, which allows customers “to identify complex relationships within their data and gain new insights” to make better business decisions. Its name, “Gridsum,” symbolizes the combination of distributed computing and analytics—the grid and sum, respectively—according to its description, and its mission is to help businesses and government agencies in China “use data in new and powerful ways.” The company trades on the Nasdaq exchange under the symbol GSUM.

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Aceto corporation

Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Aceto Corporation (NASDAQ:ACET) in connection to alleged violations of securities laws by ACET. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Aceto Corporation between August 25, 2017 and April 18, 2018.

The class action complaint specifically alleges that during the period in question, ACET might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the company was not likely to achieve certain performance metrics it had given investors in financial guidance, as a result of pressures stemming from competition and pricing which it had not disclosed; that consequently the company had made overstatements in its financial guidance; and that consequently the company’s statements to the public during the relevant period about its finances, business, operations, and prospects were materially false and/or misleading. The company announced on April 18, 2018, post-market, that the financial guidance it had issued on February 1, 2018 “should no longer be relied upon,” and additionally suspended further guidance for “at least the balance of the fiscal year.” It announced further that it anticipated “recording non-cash intangible asset impairment charges, including goodwill” ranging from $230 million to $260 million on products which it was currently marketing, in addition to pipeline generic products, “as a result of continued competitive and pricing pressures.” The company also announced that its Chief Financial Officer, Edward Borkowski, was resigning from his position. After this news was announced, the company’s stock price declined 64%, or $4.74/share, closing at $2.66/share on the following day. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, Aceto Corporation is a health products company that was incorporated in 1947 and is currently “engaged in the the marketing, sale and distribution of Human Health products, Pharmaceutical Ingredients and Performance Chemicals.” It operates as a “virtual manufacturing company,” distributing more than one thousand chemical compounds, many sourced from local professionals in China and India, which are used as raw materials or as finished products, according to its description. Its business segments include Human Health, Performance Chemicals, and Pharmaceutical Ingredients. The company is headquartered in Port Washington, New York and trades on the Nasdaq exchange under the symbol ACET.

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TrueCar

Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in TrueCar (NASDAQ:TRUE) in connection to alleged violations of securities laws by TRUE. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in TrueCar between February 16, 2017 and November 6, 2017.

The class action complaint specifically alleges that during the period in question, TRUE might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the United Services Automobile Association, or USAA, had been in the process of preparing substantial changes to its website, and that these changes would have a negative effect on the volume of purchase it created; that the USAA did make those changes to its website; that these changes, on a website that TrueCar maintained, led to a negative effect on purchase volume created by USAA; and that consequently the company’s statements to the public about its business, operations and prospects during the relevant period were false and/or misleading and/or had no reasonable basis. The complaint alleges that when true facts came to light, investors suffered losses—for instance, when the company disclosed on November 6, 2015 that USAA had executed substantial changes to its website that bore a negative effect on USAA-generated purchases, TRUE declined more than 35%, closing at $10.58/share.

According to the company’s website, TrueCar is an online automotive marketplace which describes itself as “dedicated to being the most transparent brand in the industry.” It provides users with upfront pricing information by connecting them with “TrueCar Certified Dealers, allowing them to enjoy a more confident buying experience.” The company operates a network of more than 14,000 Certified Dealers. It is based in Santa Monica, California and trades on the Nasdaq exchange under the symbol TRUE.

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ljm preservation

Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in LJM Preservation and Growth Fund Class I (MFD: LJMIX) in connection to alleged violations of securities laws by LJM. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in LJM Funds Management from February 28, 2015 until February 7, 2018.

The class action complaint specifically alleges that during the period in question, LJMIX might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that LJM had no focus on the preservation of capital; that LJM exposed investors to a substantial risk of severe losses; and that LJM had failed to make appropriate efforts to preserve capital during down markets. The complaint alleges that when true facts emerged, investors suffered losses.

LJM Partners is an investment management firm specializing in volatility strategies with a goal of delivering low correlation to equity markets. LJM Preservation and Growth Fund is an open-end fund geared toward capital appreciation, investing namely in long calls, short calls, and put options on the S&P Futures 500 index futures contracts and cash equivalents. When the S&P index declined roughly 4.6% on February 5, 20018, LJMIX suffered a loss of about 80%, declining from $9.82 on February 2, 2018 to $1.94 on February 7, 2018.

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synergy pharmaceuticalsPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Synergy Pharmaceuticals (NASDAQ:SGYP) in connection to alleged violations of securities laws by BMY. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Synergy Pharmaceuticals from September 5, 2017 until November 14, 2017.

The class action complaint specifically alleges that during the period in question, SGYP might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: TRULANCE, a therapy developed by the company for patients with chronic idiopathic constipation, lacked a side effect profile better than its competitors, in particular when it came to diarrhea; and that the company would not be able to satisfy loan agreement conditions that required it either to have $128 million in cash (or in cash equivalents) available by January 31, 2018, or to secure $100 million in financing for TRULANCE in a manner that did not require the issuing of shares, diluting the company’s shareholders. According to the complaint, the company announced on September 5, 2017 that it had secured a $300 million debt financing that would be structured as senior secured loans from CRG LP, and in a conference call on September 7, 2017, the company’s executives asserted that the loan would give Synergy “financial flexibility to continue to execute on the launch of TRULANCE and achieve our key business priorities” without causing dilution.

On November 9, 2017, however, the company disclosed stalling growth in TRULANCE prescriptions, in addition to the fact that prescribers were writing fewer prescriptions for the product, resulting from the previously undisclosed fact that the product did not have a superior side effect profile. After this announcement, the company’s share price fell approximately 8.4%. When the company announced on November 13, 2017 that it was making an offering of common stock and warrants to correct its prior misstatements and omissions regarding the CRG loan, its share price fell approximately 10.3%, from $2.72/share to a close of $2.44/share on November 13, 2017. The complaint alleges that when true details about these circumstances emerged, investors suffered losses.

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Bristol-Myers Squibb CompanyPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Bristol-Myers Squibb Company (NYSE:BMY) in connection to alleged violations of securities laws by BMY. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Bristol-Myers Squibb Company from January 27, 2015 until October 9, 2015.

The class action complaint specifically alleges that during the period in question, BMY might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company’s trial for CheckMate-026 had a greater likelihood of failure than the company had represented; that the trial suffered a more significant failure than the company had represented in announcements and disclosures made on August 5, 2016; and that consequently the company’s statements to the public during the relevant period were false and misleading. The complaint alleges that when true details emerged, investors suffered losses.

According to the company’s website, Bristol-Myers Squibb Company is a biopharmaceutical company with a mission to “discover, develop and deliver innovative medicines that help patients prevail over serious diseases.” It has developed medicines for “disease areas” that include oncology, immunoscience, fibrosis, and cardiovascular. Its charitable foundation, the Bristol-Myers Squibb Foundation, works toward the promotion of “health equity” and the improvement of “health outcomes of populations disproportionately affected by serious diseases and conditions.” The company trades on the New York Stock Exchange under the symbol BMY.

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