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Securities

Newborn and Natus Equipment

On October 16, 2015, Natus Medical Incorporated announced it had obtained a large contract with the Ministry of Health of Venezuela through its Argentinian subsidiary Medix ICSA. But the complaint for this securities class action claims that the announcement was misleading for a number of reasons, in violation of the Securities Exchange Act of 1934. Among the things not revealed during the class period was that the contract had never been signed, indicating that the Ministry of Health had never finally agreed to it. 

Roadrunner Eighteen-Wheeler

This securities class action bases its claims on Roadrunner Transportation Systems, Inc.’s statements that it had effective internal controls over its financial reporting. According to the complaint, the company did not have such control, and its claims that it did are violations of the Securities Exchange Act of 1934. The allegations come from the company’s stating that some of its previous financial reports should no longer be relied upon, because of accounting errors identified at two of its subsidiaries.

Atlas Investor Day Paper

This securities class action claims that Atlas Financial Holdings, Inc. violated the Securities Exchange Act of 1934 when it claimed to have proper internal controls over its accounting practices. The complaint contends that investors were taken by surprise when the company announced that it needed to substantially increase its reserves, thereby reducing its book value. 

Banro Mine in Democratic Republic of the Congo

When a mining company touts its close relationships with local populations, investors don’t expect to find out that the company and population are at war. But the complaint for this securities class action claims that Banro Corporation misrepresented its situation that badly in the Democratic Republic of the Congo (DRC). While local militias attacked the company’s employees, supply convoys, and property, demanding that the company make good on its promises to help the people it had relocated, the company hid the violence and instability, thus violating the Securities Exchange Act of 1934.

Grupo Televisa Logo

The payment of bribes is generally considered wrongdoing, but securities class actions like this one, aimed at Grupo Televisa and losses from investments in its American Depository Receipts (ADRs), base their case on the company’s misleading statements or concealment of bribery, which are violations of the Securities Exchange Act of 1934. In this case, the complaint claims that Televisa claimed to be an ethical company and to forbid the payment of bribes, even though it participated in the bribery of a FIFA official to gain the rights to broadcast soccer games.

Sprouts Farmers Market Store Interior

Prior to a public offering of stock, companies are required to disclose events or uncertainties, including any known trends, that may cause a change in future financial figures. The complaint for this securities class action alleges that Sprouts Farmers Market, Inc. compiled offering documents that did not meet this requirement and violated of the Securities Act of 1933. According to the complaint, the documents discussed the risk of deflation in the abstract, but did not note that deflation had already begun for certain products. 

Rewalk Exoskeleton

Complex medical devices are regulated by the Food and Drug Administration (FDA). If a company doesn’t have FDA approval for a device, it doesn’t have a product. The complaint for this securities class action claims that Rewalk Robotics Ltd. could not provide the FDA with an adequate plan for a post-market surveillance study of its exoskeletons, and that it also failed to inform investors of the reasons for the study, the FDA’s safety concerns, its failure to respond adequately, or the risks these things posed to the company, in violation of the Securities Act of 1935 and the Exchange Act of 1934.

Interior of Foot Locker Store

According to the complaint for this class action, Foot Locker, known for its stores selling athletic shoes, indicated it was expecting growth when sales were actually on the decline. The complaint cites various public statements that it claims were violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Also, during the class period, the complaint claims that officers of the company sold nearly 200,000 of their personal shares of company stock. 

Akorn Logo

In April 2017, Akorn, Inc. entered into a merger agreement with Fresenius SE & Co. KGaA, under which Fresenius would acquire Akorn, but this securities class action is not about that proposed merger. It’s about the allegedly false or misleading statements that Akorn made in the time before the merger was due to close, indicating that it complied with FDA requirements and that it had adequate internal controls. These statements, the complaint claims, misled investors, in violation of the Securities Exchange Act of 1934, as later questions were raised about the integrity of Akorn’s data related to product develpment.

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