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Securities

Platinum Logo

Investors can seldom determine for themselves the truth of a company’s public statements. They rely on the Securities Exchange Act of 1934 and its requirements of truthful disclosures. The complaint for this securities class action alleges that Platinum Pari-Mutuel Holdings, Inc. violated this law by making false or misleading statements about its acquisitions and the future revenues that could be expected, and cites as evidence the Securities and Exchange Commission (SEC) Order suspending trading in the company’s securities. The company’s press releases are characterized by vagueness about its acquisitions and their products and high praise of their effect on the company.

Omega Protein Vessel

If the Omega Protein Corporation was caught once violating federal laws, is it a good move to violate the terms of its resulting plea agreement and continue to attract federal attention? This securities class action was brought on behalf of investors whose investments were jeopardized by the company’s continuing and covert noncooperation. The complaint claims that the company failed to disclose the truth, in violation of the Securities Exchange Act of 1934. 

Caterpillar Machines

This securities class action alleges that Caterpillar, Inc. tried to evade paying US taxes by forming a Swiss subsidiary, Caterpillar S.A.R.L. through which it would pay Swiss taxes of only 4-6%. However, in order for this to be legitimate, CSARL had to carry out substantial operations and have a real business purpose, which the complaint claims it did not. Throughout a whistleblower lawsuit and investigations by the IRS, the US Senate, and others, the complaint claims that the company insisted its tax position was legitimate and it was cooperating with investigations, while it downplayed the risks of its position, in violation of the Exchange Act of 1934. Finally, the complaint says, the IRS and other authorities raided its US headquarters, marking the end of both the class period and the deception.

B&W Logo

Having many projects and engaging in cost cutting can be good things, but in the case of Babcock & Wilcox Enterprises, Inc. (B&W), the complaint for this class action claims, they ended up overstretching the company’s resources, costing money for remediation, and straining other projects. In particular, outsourcing to cheaper companies resulted in lower quality work, in both design and manufacturing, resulting in several projects having to be constructed at a loss and others producing reduced revenues. Still, the complaint says, the company did not disclose these problems to the public, violating the Securities Exchange Act of 1934.

Image for GPS Cancer Service

A $12 million “donation” to the University of Utah was the means of artificially inflating NantHealth’s prospects as well as its stock price, says the complaint for this securities class action. How did that work? According to the complaint, $10 million was earmarked for health-related research, and concealed agreements required that NantHealth performed the research. The complaint says that this both gave the company back a good deal of its “donation” and created the impression that its GPS Cancer program was in more demand than it actually was.

Scynexis Office Building in New Jersey

Scynexis didn’t disclose health and safety risks for its lead drug candidate, says the complaint for this class action. Risks of thrombotic events were uncovered in Phase 1 studies, but according to the complaint, they were not mentioned in the company’s Registration Statement for its initial public offering (IPO) or other filings for the next three years, in order to inflate its stock prices, in violation of the Securities Act of 1933 and the Securities Exchange Act of 1934. 

TD Bank Logo

A March 2017 CBC News article on Toronto-Dominion (TD) Bank, quoted in the complaint for this class action, said that “teller’s sales revenue goals have more than tripled in the past three years.” The result? The complaint claims that this pressure caused employees to take illicit actions that increased revenue at customers’ expense and without their knowledge. However, none of this was revealed in the bank’s public filings, the complaint says, in violation of the Securities Exchange Act of 1934. 

Tiny House, Calculator, Papers, and Money

Did the heavily-indebted Walter Investment Management Corporation overstate figures to make its deteriorating condition seem more solid? The complaint for this class action turns a suspicious eye on the company’s “double-counting” of certain taxable income and its need to restate some of its financial reports, alleging that they were violations of the Securities Exchange Act of 1934. The restatements significantly worsened the picture for the company, and while it was able to get waivers for some of its loan covenants, they came with a requirement for restructuring that stands to dilute an already devalued stock.

BioAmber Logo

BioAmber has a need to sell a great deal of bio-succinic acid from its expensive new facility, the complaint for this class action alleges. It suggests that the company’s overestimation of its revenues for the fourth quarter of 2016 was a deliberate strategy, designed to keep its stock prices up before it raised money in two new stock offerings.

JBS Meatpacking

This class action accuses Brazilian meatpacker JBS of providing false or misleading information in violation of the Securities Exchange Act of 1934. That may sound tame, but the complaint claims that the company touted its emphasis on quality and compliance, while bribing inspectors to overlook “processing rotten meat and running plants with traces of salmonella…” and other to keep silent. The complaint also claims that the company received questionable loans and its officials engaged in insider trading of its stock.

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