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Securities

Galena Logo

According to the complaint for this securities class action, Galena Biopharma, Inc. and two doctors schemed to over-prescribe Galena’s opioid drug for off-label uses, inflating stock prices, artificially raising revenues, and running a kickback scheme. The complaint says they hid their schemes from investors, in violation of the Securities Exchange Act of 1934. 

Pebble Mine Location

The Pebble Project envisions a vast mine for copper, gold, silver, and molybdenum—an open-pit mine of possibly two to three miles wide and a mile deep, with a 700-foot tailings dam covering several square miles. Add to that a remote location in Alaska, 200 miles from Anchorage, and severe weather conditions … and that the company has only twelve employees. The complaint for this securities class action claims that Northern Dynasty made public statements purposely underestimating the costs for the Pebble Project and its likelihood of profitability, in violation of the Securities Exchange Act of 1934. 

SITO Mobile Logo

SITO Mobile Ltd. conducted its initial public stock offering (IPO) on September 16, 2016. The complaint for this class action claims that the company made misleading statements to the pubic before, during, and after this event, in violation of the Securities Act of 1933 and the Exchange Act of 1934. First, the complaint says the company did not disclose the highly negative effects of the presidential election on its revenues around the time of its IPO; second, it says that the company’s CEO and CFO were misappropriating the company’s funds. 

Wood Pellets and Rentech Logo

Rentech, Inc. made false or misleading statements in its public statements, the complaint for this securities case alleges, in violation of the Securities Exchange Act of 1934. The statements involve details about plants, repairs, customer agreements, and other things that would have altered the mix of information available to investors, according to the complaint. These include the fact that one of its factories was over 600 miles away from its port, and that the company had overstated its pre-tax gains from a facility sale.

Global Eagle Annual Report Cover

This securities class action revolves around allegedly misleading statements Global Eagle Entertainment made about its new acquisition, Emerging Markets Communications (EMC). According to the complaint, Global Eagle gave investors updates on EMC’s integration without knowing whether the statements were true, this violating Securities Exchange Act of 1934. The complaint claims that the company had poor internal controls over financial reporting and poor abilities in integrating acquisitions, and that it had not done due diligence on EMC.

Pearson College Physics Textbook Cover

Educational publisher Pearson, PLC seems to have been slow in learning its lessons. According to the complaint for this class action, the company lagged in replacing physical textbooks with digital materials, and when it ran into problems, it tried to hide them, in violation of the Securities Exchange Act of 1934. The complaint claims that the company hid the extent of paper textbook returns, improperly assessing goodwill, and also concealed that it was having problems with its new digital products.

FDCPA Circle Logo

While companies owed debts have certain rights, the behavior of third-party debt collectors is highly regulated, thanks to the Fair Debt Collection Practices Act (FDCPA). The complaint for this class action claims that debt collector Systems & Services Technologies, Inc. did not adhere to proper practices when it attempted to collect a debt from the plaintiff Chavez in this case. Specifically, its initial letter did not inform Chavez that he had thirty days to dispute the debt, and in a follow-up telephone message it did not give him the “mini-Miranda” warning.

Ultra Beauty Sign on Brick Building

Would you buy used cosmetics or personal care products? The complaint for this securities class action alleges that Ulta Beauty, Inc. stores “cleaned up” returned products, resealed them, and put them back on the shelves, to be sold to customers as if they were new. The complaint says that the company’s failure to disclose this practice violates the Securities Exchange Act of 1934.

Surgical Gloves Made with Kraton Cariflex

Kraton Corporation changed the processing of its Cariflex product in Brazil, and according to the complaint for this securities class action, that resulted in problems. The complaint says that the company hid these problems from investors, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Only after several months did it admit that the changes had led certain customers to reject the product because of processing issues with the material. 

MiMedx Logo

When two former employees filed a whistleblower action against MiMedx Group, Inc., the company at first denied their claims and sued them in return. When analysts published reports on the allegations, MiMedx again issued denials and sued them as well.  But the complaint for this securities class action claims that these denials were a continuation of the company’s false or misleading statements, which violated the Securities Exchange Act of 1934. In actuality, it says, the company had engaged in a channel-stuffing scheme and improperly recognized revenues. 

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