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Stock Losses

Lexmark Printer

Lexmark International, Inc. sells printers and supplies around the world, but one of its most important markets is Europe. According to the complaint, the company made misleading statements about end-user demand, inventory, and the possibilities for growth, particularly related to its European wholesalers, in violation of the Securities Exchange Act of 1934. The complaint claims that the company was raising its prices for supplies, and that its European customers were ordering ahead while their fixed-price contracts were in effect and building up inventory. However, it says, the company falsely portrayed the increase in sales as a result of end-user demand.

Hands of Workers Preparing Food at Chipotle

During the latter half of 2015, incidents of mass sickness occurred related to restaurants operated by Chipotle Mexican Grill, Inc. in California, Minnesota, Oregon, Washington, and Massachusetts. The company claims to have taken steps to prevent further outbreaks, but the complaint for this class action alleges that the steps have been insufficient, that the conditions exist for further incidents, and that the concealment of this information violates the Securities Exchange Act of 1934.

Zebra Technologies Logo

Zebra Technologies Corporation acquired its Enterprise Unit from Motorola in 2014. It became one of the company’s two operating units, along with Legacy Zebra. As of December 31, 2015, the Enterprise segment accounted for 65% of net sales and 49% of operating income, but the complaint for this class action says that the results the company published for more than a year after the acquisition were misleading and false, in violation of the Securities Exchange Act of 1934.

Image from Tableau SEC Filing

Tableau Software, Inc. makes visualization products for analyzing business data, but it seems as if the company did not do well in presenting the effects of competition on its own business. According to the complaint for this class action, the company repeatedly denied that competitors’ new products would have an impact, even as they were cutting into its licensing revenue gains, while the company’s stock price fell from $127.07 to $37.22 per share. The complaint claims that the company’s misleading statements were violations of the Securities Exchange Act of 1934.

Prescription Bottles and a Variety of Pills

Intellipharmaceutics International, Inc. has been working on a bioequivalent to Oxycodone that it claimed had abuse-deterrent properties. However, the complaint for this class action alleges that the company had not done as much as it claimed to prove the abuse-deterrent properties, nor had it provided the FDA with sufficient data to support approval.

Foundation Medicine Offices

The complaint for this class action claims that Foundation Medicine, Inc. made falsely positive statements about the possibility of Medicare coverage for its genetic testing, which was likely to lead to coverage by other insurers. The complaint claims that the company thus inflating its stock price, in violation of the Securities Exchange Act of 1934. 

Advisory Board Cafe Space

When The Advisory Board Company acquired Royall & Company, it must have looked like a natural extension of its businesss, since both companies provide software solutions to colleges and universities. But the complaint for this class action claims there were problems from the first that Advisory Board had not anticipated and did not disclose in its statements to the public. Problems included integration problems, the abrupt departure of Royall’s CEO and CFO (who were supposed to help with integration), the inability to recognize as much revenue as Royall had been, and an impairment of Royall’s goodwill. 

Illustration of TechnipFMC Project Site

Foreign currency rates can have a big impact on expenses and profits when projects are carried out on foreign soil or with foreign-bought materials. The complaint for this class action alleges that TechnipFMC did not maintain proper internal control over the rates used to calculate its financial results. The complaint claims that the problem made its public statements inaccurate and misleading, in violation of the Securities Exchange Act of 1934.

Medical Examination Room

Maximus, Inc. was awarded a large contract by the UK Department for work and pensions (DWP) to handle health and disability benefits as the Health Assessment Advisory Service (HAAS). The complaint for this class action alleges that the company knew that its HAAS goals were unrealistic and that it had problems from the beginning, but that the bad news was released only a little at a time.

Envision Logo on Stock-Trading Screens

Because healthcare is a complicated field, we trust that our providers will steer us right. According to the complaint for this class action, Envision Healthcare Corporation’s subsidiary EmCare took advantage of this trust to create higher billings for itself, by booking out-of-network doctors for patients who had chosen in-network hospitals. The complaint claims that the company hid these practices, and that this led to a sharp fall in its stock price when the truth came to light.

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