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Stock Losses

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.

Mixed Martial Arts Fight

This securities class action centers on Alliance MMA’s and false or misleading statements made by the company in its Registration Statement in relation to its 2016 initial public offering (IPO). On April 12, 2017, the company filed a Form 8-K that said in part that the condensed consolidated financial statements “should no longer be relied upon because of an error in recognizing as compensation transfers of common stock by an affiliate of the Company to individuals who were at the time of transfer, or subsequently became, officers, directors, or consultants of the Company.” The complaint claims that the errors were violations of the Securities Act of 1933. 

Ocwen Logo on Building

The complaint for this securities class action doesn’t focus on the Ocwen’s original “rampant and systemic failures” in servicing mortgages. Instead, it focuses on a period after regulatory agencies had sanctioned it, when, according to the complaint, Ocwen made false or misleading public statements indicating that it was remedying its problems. The complaint says this artificially inflated its stock and caused losses when investors found out it had not been doing so. 

Lit Board with Values

The Catalyst Futures Fund claimed to have a focus on preserving capital (and therefore an aversion to excessive risk), yet the complaint for this class action claims it continued to use the complex and risky strategies it had employed when it was a hedge fund. According to the complaint, this was a violation of the Securities Act of 1933, and it resulted in a loss of over a billion dollars in fund assets. According to the complaint, the fund had taken out large options contracts that shorted the S&P 500, but they failed to pay off. The complaint claims that the bets were out of proportion with the risk profile for the fund.