Articles Posted in Class Action

Cheetah MobilePublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Cheetah Mobile (NYSE:CMCM) in connection to alleged violations of securities laws by CMCM. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Cheetah Mobile between April 26, 2017 and November 27, 2018.

The class action complaint specifically alleges that during the period in question, CMCM might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the company’s apps contained features—which the company had not disclosed—which monitored when its users downloaded other apps; that the company employed the data gathered by these features to improperly assert that it had caused those downloads; that when these features were uncovered, they had the potential to result in the Cheetah Mobile’s apps being removed from the Google Play app store; and that consequently the revenues enjoyed by the company during the relevant period partially stemmed from inappropriate activities, and were thus not sustainable; and that consequently the company’s statements to the public during the relevant period were false and misleading. When BuzzFeed News issued a report on November 26, 2018 that a number of Cheetah Mobile applications contained features that tracked downloads of new apps and that the company “inappropriately claim[ed] credit for having cause this download,” the company’s stock value declined $3.32/share, or approximately 37%, over the following two days of trading, closing at $5.48/share on November 27, 2018. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, Cheetah Mobile is “a leading mobile internet company dedicated to making the world smarter.” On November 26, 2018, BuzzFeed News reported that the research firm Kochava had uncovered a scheme in which “Eight apps with a total of more than 2 billion downloads in the Google Play store have been exploiting user permissions as part of an ad fraud scheme that could have stolen millions of dollars.” According to the report, seven of those eight apps were owned by Chetah Mobile; the other was owned by Kika Tech. According to the company, the scheme took advantage of a fee app developers pay, usually between 50 cents and three dollars, “to partners that help drive installations of new apps.” Kochava’s research found that the companies used a practice known as click flooding or click injection, which tracks users’ downloads of new apps and claims credit for the download, such that they would receive the fee for the installation “even when they played no role” in it. Following the story’s publication, two Cheetah Mobile apps, CM Locker and Batter Doctor, “were removed from the Google Play store,” according to BuzzFeed News.

GreenSkyPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in GreenSky (NASDAQ:GSKY) in connection to alleged violations of securities laws by GSKY. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in GreenSky between May 21, 2018 and November 27, 2018.

The class action complaint specifically alleges that during the period in question, GSKY might have provided false and/or misleading material information, and/or failed to disclose adverse material information, chiefly: that offering documents issued in connection with its May 29, 2018 Initial Public Offering omitted a substantial shift in its merchant business mix which led to a decline in its transaction revenue. According to the complaint, these documents represented the company’s revenue model as a “strong” and “recurring” one, casting a positive light on the company’s growth and omitting the decline in its transaction-fee revenue. That IPO generated more than $1 billion in gross proceeds, per the company’s offering documents; a few months later, in August 2018, it reported poor financial results stemming from a change in its merchant business mix, from solar panel merchants to those in the elective healthcare space, whom it charged a lower transaction fee, according to the complaint. The company later posted additional results that fell short of expectations and subsequently reduced its financial guidance, after which its share price declined to $9.28/share on November 6, 2018, approaching 60% less than its IPO price of $23/share. The complaint alleges that when true facts emerged, investors who made purchases traceable to the IPO suffered losses.

According to the company’s website, GreenSky is a Georgia-based financial technology company that offers a proprietary platform which “large and growing opportunity in mobile, online and in-store point of sale finance, driving significant value for our constituents: merchants, banks and consumers.” Per its description, its platform boasts 14,000 active merchants, 2.1 million cumulative customers, $15 billion cumulative transaction volume, 33% growth in transaction volume, and 52% adjusted EBITDA margin. It trades on the Nasdaq exchange under the symbol GSKY.

PPDAI GroupPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in PPDAI Group (NYSE:PPDF) in connection to alleged violations of securities laws by PPDF. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in PPDAI Group between February 8, 2017 and November 13, 2018.

The class action complaint specifically alleges that during the period in question, PPDF might have provided false and/or misleading material information, and/or failed to disclose adverse material information in connection with its Initial Public Offering in November 2017, namely: that the company was participating in predatory lending activities in which they gave debts with high interest rates to subprime borrowers and others with poor or limited credit histories who would be unable to repay the debts; that many of the company’s customers were taking out loans to repay other loans, consequently inflating the company’s revenues as well as its active borrower statistics, in turn raising the potential for defaults; that the company’s reserves were being negatively impacted by rising rates of delinquency; that what the company represented as “rapid growth” in the quantity and size of its loans had tapered off; that the company was giving college students online loans even though the government had banned doing such; that the company was participating in improper and aggressive practices when it came to collecting debts; and that as a result of its improper practices, the company faced an increased risk of negative actions by regulatory authorities in China. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, PPDAI Group is a web-based consumer finance marketplace based in China. It was launched in 2007 and is also known as Paipaidai. Per the company’s description, it boasted more than 78 “cumulative registered users” as of June 30, 2018. Its focus is on borrowers aged 20 to 40, which it states is “a demographic typically more receptive to internet financial services and poised to become the driving force of China’s consumer finance market.” Its borrowers live in “97% of the cities and counties in China,” according to the company, and many have “limited or no credit history.” It chiefly offers customers short-term loans “to meet their immediate credit needs” while building credit history over time. The company trades on the New York Stock Exchange under the symbol PPDF.

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.

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.

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.

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.

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.

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.

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.