Skip to content Skip to navigation

Stock Losses

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. 

NQ Mobile Logo

This securities class action stems from a sale of assets by NQ Mobile, purportedly to Tongfang Investment Fund. However, the complaint claims that the assets were actually bought by an NQ Mobile insider and that the terms of the deal have ramifications for NQ that were not disclosed to the public, in violation of the Securities Exchange Act of 1934. The evidence centers around the increase in the percentage of the assets’ ownership by NQ’s chairman and NQ’s acceptance of a note in partial payment for the assets a year after the assets’ transfer.

Aflac Duck Head

Aflac Incorporated’s public statements included assurances about ethics, the excellent treatment of employees, and even a homey little recollection of someone’s mother’s “persistent wisdom” about looking out for others. But the complaint alleges that in reality the company was acting very differently, making its statements violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. On January 11, 2018, The Intercept published a report revealing lawsuits against the company alleging exploitation of workers, manipulation of accounting, and insider trading. The news caused stock losses to investors.

Bristol-Myers Squibb Sign on Building

Investors depend on pharmaceutical companies for accurate descriptions of the findings of their drug trials. Unfortunately, the complaint for this class action claims that Bristol-Myers Squibb Company violated the Securities Exchange Act of 1934 by providing misleading information while its drug trials for cancer drug Opdivo were in progress. The complaint claims that the company failed to disclose that the study was more likely to fail than the company was representing, and later, that the failure was more severe than its first announcement revealed.

Johnson & Johnson Baby Powder Bottle

Is forty years enough time for a company to remove harmful ingredients from a product? The complaint for this securities class action claims that Johnson & Johnson knew that its talc contained asbestos as early as 1972 but hid this from the public. According the complaint, 5,000 lawsuits have been filed against the company by victims of ovarian cancer and mesothelioma, illnesses purportedly caused by asbestos, some of which have revealed documents indicating that the company has known about the problem for decades.

Super Micro Computer Motherboard

Super Micro Computer, Inc. filed results for its second and third quarters of 2017—and then cast doubt on them, without clarifying the extent of the problem or when it would be solved. The complaint for this class action claims the company violated the Securities Exchange Act of 1934 by making false or misleading statements in its public filings, involving both accounting errors and Sarbanes-Oxley (SOX) certifications of internal control over its reporting. The problem seems to have centered on the assigning of transaction revenue to certain quarters, and by the end of the class period, the company was still unsure of what the effect would be on its historical financial statements.

Trulance Logo

In announcing a $300 million loan, the complaint for this class action claims, Synergy Pharmaceuticals failed to disclose its terms and other conditions that were important to investors, making the announcement misleading and a violation of the Securities Exchange Act of 1934. Among other things, the company had not disclosed that it would need to issue additional shares of stock to meet the terms of the loans. 

Funko Dolls Sulley and Boo

It’s not a good sign when Bloomberg Gadfly publishes an article on a company entitled, “Funko Extends Playtime to Its Accounting.” The complaint for this class action quotes from that article to explain the falsity of at least one of the figures in the company’s financial statements. According to the complaint, Funko, Inc.’s Registration Statement, including a Prospectus, for its initial public offering (IPO) was misleading, in violation of the Securities Act of 1933. 

Advance Auto Parts Logo

According to the complaint for this class action, Advance Auto Parts, Inc. was reluctant to admit to problems in integrating its new acquisition, and in failing to do so, it violated the Securities Exchange Act of 1934. The company blamed problems on everything including the weather, but only belatedly admitted that the problems were larger than it had disclosed. 

Gloved Hands Holding Vial of Blood

Drug trials are difficult to follow, so investors rely on companies to make honest statements about their results. The complaint for this class action alleges that Bellicum Pharmaceuticals, Inc. was not forthright during the class period about a problem uncovered in trials of its primary drug candidate. The company reported positive information about the results of its drug trials, but then in January 2018 abruptly announced that the trials were being suspended by the FDA “following three cases of encephalopathy deemed as possibly related to BPX-501.”