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Stock Losses

2016 Ford Fusion Steering Wheel

This class action against Ford doesn’t concern the flaws in its vehicles but the statements Ford made over a period of years that concealed the flaws. The complaint for this class action claims that Ford misled those who bought its securities, violating sections of the Securities Exchange Act of 1934 by not revealing that some of its vehicles had steering wheels that could detach while the vehicles were in motion.

Trivago Logo

Trivago, the online hotel search platform, had its initial public offering on December 16, 2016. About a month before, it filed a Form F-1 Registration Statement, which was amended several times, and which contained a preliminary prospectus. The complaint for this class action claims that Trivago’s Registration Statement and subsequent statements were false and misleading, in violation of the Securities Exchange Act of 1934, because they touted Trivago’s adherence to ethical business conduct, even though, according to the complaint, Trivago was engaged in conduct likely to lead to increased regulatory scruntiny.

Omega Healthcare Investors Logo

Omega Healthcare Investors, Inc. is a real estate investment trust investing in healthcare facilities in the US and UK. The complaint for this class action claims that the company did not disclose problems with certain facilities, including two of its top-ten operators, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Magellan LeadCare II Testing System

Meridian Bioscience, Inc. announced its acquisition of Magellan Biosciences, Inc. and its subsidiary Magellan Diagnostics, Inc. by touting their lead testing system, but the complaint for this class action alleges that Meridian knew that the system produced inaccurate results. When the FDA issued a warning to this effect, the complaint claims, Meridian’s stock price dropped abruptly.

Endo International Logo

Endo International plc develops pharmaceutical products and generic drugs, so its acquisition of Par Pharmaceutical Holdings, Inc., a maker of generic drugs, must have seemed like a profitable move. But the complaint claims Endo concealed information then and over the next many months: that Par had colluded to fix generic drug prices, that the “double-digit growth” the company expected was to come in part from Par’s illegal price-fixing, and that new CEO Campanelli’s “impressive track record” was due in part to that illegal activity. The complaint alleges that the company’s revenues were therefore unsustainable and its public statements false and misleading.

Cheetah Mobile Logo

Cheetah Mobile offers “global content promotional channels,” and a live video streaming application called Live.me which has a gifting system through which broadcasters can earn money from users. The figures it reported in the 2016 20-F and second quarter press release were impressive. However, the complaint alleges that the figures and positive outlook were false and misleading, because a research group subsequently reported that 55% of the company’s second-quarter consolidated revenue “does not exist” and because the company was using fake accounts to pretend that users of Live.me were rewarding other users.

Ubiquity Networks Logo

Ubiquiti Networks, Inc. seemed to have an interesting idea in the four-million-participant “Ubiquiti Community” it claimed to have in place of a conventional sales force. But according to the complaint for this class action, on September 18, 2017, Citron Research issued a report which accused the company of “corporate fraud” and deceit, in both its statements about the size of the Ubiquiti Community and about its account receivables. The complaint claims that the company has violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, among other laws.

Abandoned Unit of SCANA Nuclear Project

On January 19, 2016, SCANA Corporation celebrated progress on the construction of its multi-billion-dollar V. C. Summer nuclear power station in Fairfield County, South Carolina. The press release announced the “achievement” of “milestones” and said that the “nuclear construction team concluded the year on a high note.” But according to the complaint for this class action, the impression of progress was false. SCANA continued for many months to insist that the project was on schedule, despite having a secret report indicating the opposite. When it finally announced the abandonment of the project, the state’s attorney general requested a criminal investigation into the project. The complaint alleges violations of the Securities Exchange Act of 1934 with scienter.

Laboratory Vessels

When the FDA granted Intercept Pharmaceuticals accelerated approval for its new liver drug Ocaliva (OCA), the company’s May 27, 2016 press release was optimistic. It quoted a past president of the American Association for the Study of Liver Diseases as saying, “Ocaliva fills an important unmet need for the many patients” with the liver disease PBC who have not responded to previous treatments. But according to the complaint, the outlook for OCA was a lot less hopeful. On September 21, 2017, the FDA issued a safety announcement warning about “serious liver injury with Ocaliva” even in “some patients with mild disease who are receiving the correct dose.” It spoke of nineteen deaths, of which seven had been caused by a “worsening of PBC disease”. It also said it had “identified 11 cases of serious liver injury with Ocaliva use.”

This securities fraud class action lawsuit alleges that KLX, Inc. violated the federal securities law by materially misrepresenting the value of its intangible assets and its goodwill associated with the Company's Energy Services Group, along with its policies and the methodology implemented to calculate goodwill, risk and asset impairment, conduct which ultimately caused significant losses to investors.

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