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Stock Losses

Mine on Simandou

Simandou is a mountain that is rich in minerals, but it is in the interior of Guinea, a West African country that by some accounts is one of the most corrupt places in the world. The complaint for this class action claims that Rio Tinto PLC became anxious when some of its mining rights were revoked and given to a competitor and that it paid a very large bribe to ensure that it retained its remaining rights. However, the company continued to claim it did not pay bribes and did business ethically, in violation of the Securities Exchange Act of 1934. 

New Oriental Education & Technology Building

A subsidiary of the New Oriental Education & Technology Group, Inc. helps students in the People’s Republic of China apply to foreign universities. But according to the complaint for this class action, this subsidiary actually writes application materials and handles the whole application process, sometimes fabricating information. This is fraud, the complaint claims, and not disclosing it violates the Securities Exchange Act of 1934 and affects the value of the entire company.

Colony NorthStar Logo

Colony NorthStar, Inc. is a real estate and investment management company that operates in five segments. The complaint for this class action alleges that the company did not disclose in a timely way adverse information, about the company’s Healthcare and Investment Managements segments, including some units related to its merger, in violation of the Securities Exchange Act of 1934.

Cancer Genetics Logo

The complaint for this securities class action alleges that Cancer Genetics, Inc. failed to properly account for doubtful collections in some of its accounts, recording them as bad debts when they should have been reductions in net revenue. The complaint says that the improper recording amounts to a violation of the Securities Exchange Act of 1934. 

Ericsson Logo

Telefonaktiebolaget LM Ericsson did not prepare its financial statements according to International Financial Reporting Standards (IFRS), claims the complaint for this securities class action. As a result, it says, it overstated service revenues and improperly delayed reporting at least a billion dollars of expenses on long-term service projects, making its public statements false and misleading under the Securities Exchange Act of 1934. Throughout the class period, as the company reported disappointing results, its stock price fell precipitously.

Synacor Office

News of Synacor’s signing of a three-year contract with AT&T, the largest pay TV provider in the US, seemed promising for the company when it was announced in 2016. But the complaint for this class action claims that Synacor did not disclose that the large revenues projected to come from the contract would not show up until 2018, long after the announcement was made. The complaint for this class action alleges that the company misled investors into thinking that they would come much sooner, in violation of the Securities Exchange Act of 1934.

Longfin Logo

What should investors think of a company that holds an initial public offering, projects astronomical growth, then admits it lacks even personnel who are skilled in proper reporting? The complaint for this class action alleges that Longfin Corporation stock rose and plunged in a matter of months, based on false impressions of the corporation which were provided or sustained by its management, in violation of the Securities Exchange Act of 1934.

Illumina NextSeq 550

When Illumina, Inc. came out with two new genetic sequencing instruments that offered “dramatic technology advances” as well as lower costs and more flexibility, it was right to anticipate good sales of these products. However, the complaint for this class action alleges that in predicting revenues for the third quarter of 2016, it ignored their increasing impact on its sales of an older instrument, which were declining. The complaint alleges that the company ignored these declines when issuing its guidance for the quarter and thus violated the Securities Exchange Act of 1934.

Dakota Plains Logo

The complaint for this class action alleges that Ryan R. Gilbertson and Michael L. Reger founded Dakota Plains Holdings in order to run a stock manipulation scheme. The two made all important decisions concerning the company, the complaint said, yet hid the extent of their ownership as well as their roles and their stock manipulation and other schemes that took advantage of the company. The extensive deceits were violations of the Securities Exchange Act of 1934, the complaint claims.

Universal Health Services Sign

The complaint for this securities class action alleges that Universal Health Services, Inc. (UHS) “manipulated and fabricated” patient intake assessments, including labeling some patients as suicidal when they were not, in order to make money from their insurance policies. It also claims they were held longer than was medically necessary, in order to make more money from their insurance policies. The complaint claims that the company inflated its stock price by this scheme and did not disclose it to investors, in violation of the Securities Exchange Act of 1934.

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