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Stock Losses

Rayonier Advanced Materials Plant in Florida

Rayonier Advanced Materials, Inc. admitted to investors and the public that prices in its market had fallen, but it claimed to have still retained its customers. What the company didn’t say, the complaint for this class action alleges, was that it was on the verge of a lawsuit with its largest customer. The dispute centered on a “meet or release” provision in the contract that required Rayonier to meet competitors’ pricing or release the volume of product Eastman was required to purchase.

Opana Pill Bottle

Endo International makes both branded and generic drugs, including Opana ER, an opioid designed for the management of severe pain. Endo reformulated the product to make it harder to crush, to lessen its chance of abuse by snorting or injection. But the complaint for this class action claims that it was never actually crush-resistant, and that the company’s statements insisting, for years, that it was were violations of the Securities Exchange Act of 1934.

Depomed's Nucynta

Drug makers are subject to numerous rules and regulations, so the quality of their compliance efforts matters. The situation is only more intense when the drugs they made are opioids. According to the complaint for this class action, pharmaceutical company Depomed provided the public with misleading information about its sales and marketing practices, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Although Depomed did warn investors of the risks of regulations and sales and marketing practices, the complaint claims that it did not disclose that its own sales and marketing processes were questionable and likely to be scrutinized by regulators.

Acuity Brands Lighting at Atlanta Airport

Acuity Brands, Inc. specializes in lighting and building management solutions, such as lights, lighting components, controls for lighting and HVAC systems, and power supplies. According to the complaint for this class action, however, as sales fell during the class period, the company tried to explain them away, did not disclose negative facts that would lead to continuing low performance, and overstated the possibilities for positive growth.

From Wheelchair to Walking with Exoskeleton

According to the complaint for this class action, the officers of Ekso Bionics Holdings, Inc. attested to the company’s control over its financial reporting, over and over, during a period where in fact its control was impaired. This, the complaint claims, violates Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, because on December 14, 2017, Ekso filed a Form 8-K stating that its internal control over financial reporting was not effective on December 31, 2016 or in subsequent periods.

Data on Illuminated Board

According to the complaint for this class action, Capitala Finance Corporation (CFC) caused a loss of talent at its investment advisor, Capitala Investment Advisors (CIA) when it had CIA waive an incentive fee agreement. The complaint claims that the company noted in its public disclosures that talent was important to the company but did not reveal its loss in that area, in violation of the Securities Exchange Act of 1934.

Kobe Steel Machinery

In a shocking public announcement in October 2107, the celebrated Kobe Steel company admitted that it had failed at quality control and falsified inspection certificates. The complaint for this class action alleges that the company deliberately hid its misconduct, in violation of the Securities Exchange Act of 1934, and gave the public false and/or misleading information claiming it put a high value on compliance, ethics, and product quality.

Credit Suisse Building with Swiss Flag

In its SEC filings, Credit Suisse Group touted its “comprehensive risk management processes and sophisticated control systems” over its investments. How then did the company manage to pile up nearly $3 billion in distressed debt and US collateralized loan obligations? According to the complaint for this class action, between 2012 and 2015, Credit Suisse’s investment banking division was “seeking revenue at any cost” and putting money into risky, illiquid securities, while claiming to have strict risk management protocols in place. 

Philip Morris iQOS Product

Philip Morris International, Inc. has been developing a series of products that pose smaller health risks than traditional tobacco products. However, the complaint for this class action alleges that the company did not disclose information on clinical studies that might interfere with the products’ approval by the Food and Drug Administration (FDA). The company’s SEC filings during the class period cite positive study results, but a Reuters article alleges that the studies were poorly conducted, with inadequate training and professionalism on the part of some of its lead investigators. The complaint claims that the failure to report this information is a violation of the 1934 Act.

The Crypto Company Logo

The complaint for this class action claims that the 17,000% surge in the value of The Crypto Company’s stock was caused by manipulation and that the company did not disclose this to investors. It quotes company filings that speak of control of company financial reporting, and then cites the SEC’s decision to suspend trading in Crypto’s securities based on concerns about the compensation the company paid for stock promotion, the plans of insiders to sell their stock, and possible manipulative transactions in the company’s stock in November 2017. The complaint alleges that the company’s failure to provide information about all these things are violations of the Securities Exchange Act of 1934.

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