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Securities

Mine on Simandou

Simandou is a mountain that is rich in minerals, but it is in the interior of Guinea, a West African country that by some accounts is one of the most corrupt places in the world. The complaint for this class action claims that Rio Tinto PLC became anxious when some of its mining rights were revoked and given to a competitor and that it paid a very large bribe to ensure that it retained its remaining rights. However, the company continued to claim it did not pay bribes and did business ethically, in violation of the Securities Exchange Act of 1934. 

Facebook "f" Logo with Silhouettes

This class action alleges that Facebook, Inc. allowed Cambridge Analystica, LLC (CA) to mine the data of some 50 million Facebook users, for the purpose of influencing voters in what the complaint calls “an unprecedented attack on democracy”—not to mention an unprecedentedly  massive misuse of personal information. Facebook has admitted that most of its users have likely had their information scraped by outsiders, which the complaint claims is a violation of the Stored Communications Act, the Alabama Deceptive Trade Practices Act, and common law.

New Oriental Education & Technology Building

A subsidiary of the New Oriental Education & Technology Group, Inc. helps students in the People’s Republic of China apply to foreign universities. But according to the complaint for this class action, this subsidiary actually writes application materials and handles the whole application process, sometimes fabricating information. This is fraud, the complaint claims, and not disclosing it violates the Securities Exchange Act of 1934 and affects the value of the entire company.

2017 Chevrolet Equinox

If your car engine is consuming oil faster than it should, how would you know when more oil is needed? Perhaps you would rely on the vehicle’s oil pressure warning (OPW) or oil life monitoring (OLM) system. But if you had a Chevrolet Equinox from certain model years, the complaint for this class action alleges, your engine could suffer damage or even shut down on the road before either of these systems gave you a warning. The complaint alleges breaches of warranties, among other violations.

Colony NorthStar Logo

Colony NorthStar, Inc. is a real estate and investment management company that operates in five segments. The complaint for this class action alleges that the company did not disclose in a timely way adverse information, about the company’s Healthcare and Investment Managements segments, including some units related to its merger, in violation of the Securities Exchange Act of 1934.

Cancer Genetics Logo

The complaint for this securities class action alleges that Cancer Genetics, Inc. failed to properly account for doubtful collections in some of its accounts, recording them as bad debts when they should have been reductions in net revenue. The complaint says that the improper recording amounts to a violation of the Securities Exchange Act of 1934. 

Ericsson Logo

Telefonaktiebolaget LM Ericsson did not prepare its financial statements according to International Financial Reporting Standards (IFRS), claims the complaint for this securities class action. As a result, it says, it overstated service revenues and improperly delayed reporting at least a billion dollars of expenses on long-term service projects, making its public statements false and misleading under the Securities Exchange Act of 1934. Throughout the class period, as the company reported disappointing results, its stock price fell precipitously.

Izea Logo

When does $6.5 million become only half a million? When a company has improperly figured revenues, as the complaint for this class action alleges was the case with Izea, Inc., which reported gross billings to marketers when it should have reported only net transactions. Proper accounting for revenues is important in assessing the performance of a company, and the complaint claims that the misstatements were violations of the Securities Exchange Act of 1934.

Synacor Office

News of Synacor’s signing of a three-year contract with AT&T, the largest pay TV provider in the US, seemed promising for the company when it was announced in 2016. But the complaint for this class action claims that Synacor did not disclose that the large revenues projected to come from the contract would not show up until 2018, long after the announcement was made. The complaint for this class action alleges that the company misled investors into thinking that they would come much sooner, in violation of the Securities Exchange Act of 1934.

Longfin Logo

What should investors think of a company that holds an initial public offering, projects astronomical growth, then admits it lacks even personnel who are skilled in proper reporting? The complaint for this class action alleges that Longfin Corporation stock rose and plunged in a matter of months, based on false impressions of the corporation which were provided or sustained by its management, in violation of the Securities Exchange Act of 1934.

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