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Tempur Sealy Adjustable Mattresses

When a supplier puts the screws on a customer during a vulnerable time, it’s understandable when the customer, later finding itself in a more favorable position, turns the tables. Tempur Sealy International, Inc. may have been too sure of its upper hand when it put the screws on Mattress Firm. At any rate, the complaint for this class action claims that Tempur Sealy violated the Securities Exchange Act of 1934 in not disclosing the risk it was taking in strong-arming Mattress Firm. When it finally lost its largest customer, the complaint said, the market was shocked, and its stock price fell.

Image of Hands, Papers, and Calculator

When a company’s figures are inaccurate, investors worry not only about the specific figures but also about the company’s internal controls on reporting. The complaint for this class action claims that US Physical Therapy, Inc. (USPh) had inadequate controls, resulting in inaccurate treatment of redeemable non-controlling interest of acquired partnerships, in violation of GAAP and the Securities Exchange Act of 1934.

Colorful Pills on Blue Surface

Endo International PLC seems to have been hit hard by changes in the drug industry and concerns about opioids. The complaint claims that Endo’s Generics portfolio relied heavily on pain medications and controlled substances for more than half of its revenue; yet concerns about addiction had led to a decline in opioid prescriptions and the government had “upscheduled” hydrocodone to a more restricted category of drugs. According to the complaint, however, the company concealed these factors and filed only positive information prior to its secondary public offering (SPO), in violation of the Securities Act of 1933.

Image Representing Banking Business

BofI Holding, Inc. is the holding company for Bank of Internet USA, so if Bank of Internet is involved in wrongdoing, the fortunes of BofI Holding are affected. The complaint for this class action claims that Bank of Internet engaged in illegal conduct, that these activities could subject the company to increased scrutiny and possible criminal penalties, and that the company’s failure to disclose this is a violation of the Securities Exchange Act of 1934. The complaint’s allegations are based on a Justice Department probe into possible money laundering at Bank of Internet. The article reported that the SEC and Treasury Department were also involved in the probe.

NASDAQ Lit Boards with Figures

According to the complaint for this class action, Wins Finance Holdings, Inc. came up with a neat little scheme to avoiding delisting from NASDAQ: It decided to get listed on the Russell 2000. Unfortunately, to do this, it falsely claimed to have its principal offices in the US, although these “offices” consisted of a room in someone else’s offices with a single desk in it. Although Wins was listed for awhile, the complaint claims its false statements were violations of the Securities Exchange Act of 1934. When the truth came out, Wins’ stock price plunged, and it was eventually delisted from both exchanges. 

Cutaway View of Obalon Balloons in Stomach

Public companies are required to disclose revenues and other figures according to generally accepted accounting principles (GAAP). But according to the complaint for this class action, Obalon Therapeutics did not properly present its revenues during the class period, and concealed this fact, thus inflating its stock price and violating the Securities Exchange Act of 1934. On January 23, 2018, the company announced that “a purported whistleblower” had contacted the company’s independent auditors alleging that Obalon’s revenue recognition was improper. The company said its Audit Committee would oversee an internal investigation into the allegations and the stock’s price fell by 33.3%.

Elderly Person's Eye

Ohr Pharmaceutical, Inc. indicated it had a good product in Squalamine for treating vision problems. But according to the complaint, its results were less impressive than its public statements indicated, which the complaint claims is a violation of the Securities Exchange Act of 1934. The company continued to make statements about the good results of its trials and the drug’s promise until January 4, 2018, when it had to admit that its Phase III trials less efficacy than existing drugs. 

Wells Fargo Logo

In 2016, news broke that Wells Fargo had been opening bank and credit card accounts for customers without their consent. Was that the end of Wells Fargo’s wrongdoing? The complaint for this class action says no, because of a July 27, 2017 New York Times article claiming Wells Fargo forced unwanted auto insurance on borrowers. The complaint claims that statements the company made about reforming itself and acting only in its customers’ interest were false, misleading, and violations of the Securities Exchange Act of 1934.

Quantum Equipment

The complaint for this class action claims that Quantum Corporation made false or misleading statements, (a) about its adoption of new accounting standards, (b) in the financial statements that supposedly incorporated them, and (c) in its assurances that it had adequate internal control over its procedures, reporting, and disclosures. These statements, the complaint says, artificially inflated the price of its stock, making the company responsible for losses when contrary information came out. 

Lion Biotechnology Logo

The securities laws require that online articles or other communications recommending stocks to disclose any entity who paid them to promote the stock, with the amount and type of payment. The complaint for this securities class action claims that Manish Singh, the CEO of Lion Biotechnologies, Inc., hired a company called Lidingo to promote its stock but did not permit its article writers to disclose that they were paid promoters, in violation of both the Security Act of 1933 and the Securities Exchange Act of 1934.