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Stock Losses

PixarBio Logo

PixarBio Corporation’s CEO used the company as a vehicle for a feud with InVivo, charges the complaint for this class action, including offering to buy InVivo for roughly half its value. It claims that PixarBio made misleading statements about its activities, its aims, and the use of funds from its offerings, in violation of the Securities Exchange Act of 1934. In January 2017, the SEC temporarily halted trading in PixarBio’s stock and may file an enforcement action against it. 

"BT" and BT Group Logo on Side of Building

BT Group hinted in its public Securities and Exchange Commission (SEC) filings at problems at its Italian branch. However, the complaint for this class action alleges that the company did not disclose the problems with financial reporting at BT Italy, in violation of the Securities Exchange Act of 1934. On January 24, 2017, the company issued a press release stating that “the extent and complexity of inappropriate behavior …  were far greater than previously identified” and included “improper accounting practices and a complex set of improper sales, purchase, factoring and leasing transactions.” It took a write-down of roughly $700 million.

Western Union Sign

In January 2017, the Western Union Company agreed to pay $586 million to settle with customers defrauded in transactions with the company. According to the settlement with federal regulators, it had also failed to institute anti-money laundering measures. But the complaint for this securities class action claims that the company still did not take effective steps to remedy the situation. This securities class action alleges that the company did not disclose its criminal activity and lack of compliance to the public, in violation of the Securities Exchange Act of 1934, and that it is therefore responsible for stock losses as the truth came out. 

State Street Building

This securities class action is built on two other actions involving fraudulent charges or overcharges of customers, for commissions and SWIFT messages, by State Street Corporation which ultimately added up to hundreds of millions of dollars. The complaint alleges that the company violated the Securities Exchange Act of 1934 in its publication of revenues and liabilities during the class period, because the supposed “revenues” included these false charges, which would become a liability the company would have to pay back when the truth emerged.

Gigamon Equipment and Logo

This securities class action claims that Gigamon, Inc. overestimated its future earnings and did not disclose to investors that a major customer was deferring purchases, in violation of the Securities Exchange Act of 1934. However, the complaint quotes confidential witnesses who say that the company set unrealistic targets for its sales people and suggests that the officers were incapable of making reasonable projections.

Egalet Manufacturing Process

Egalet Corporation was developing a new drug, which was special not for its medical properties but for its abuse-deterrent characteristics. However, the complaint claims that the company knew all along that its was unlikely to get FDA approval of intranasal abuse-deterrent labeling, because a competitor drug had already been granted a three-year term of exclusivity for that characteristic. The complaint says that the company’s optimistic statements thus violated the Securities Exchange Act of 1934.

Newborn and Natus Equipment

On October 16, 2015, Natus Medical Incorporated announced it had obtained a large contract with the Ministry of Health of Venezuela through its Argentinian subsidiary Medix ICSA. But the complaint for this securities class action claims that the announcement was misleading for a number of reasons, in violation of the Securities Exchange Act of 1934. Among the things not revealed during the class period was that the contract had never been signed, indicating that the Ministry of Health had never finally agreed to it. 

Roadrunner Eighteen-Wheeler

This securities class action bases its claims on Roadrunner Transportation Systems, Inc.’s statements that it had effective internal controls over its financial reporting. According to the complaint, the company did not have such control, and its claims that it did are violations of the Securities Exchange Act of 1934. The allegations come from the company’s stating that some of its previous financial reports should no longer be relied upon, because of accounting errors identified at two of its subsidiaries.

Atlas Investor Day Paper

This securities class action claims that Atlas Financial Holdings, Inc. violated the Securities Exchange Act of 1934 when it claimed to have proper internal controls over its accounting practices. The complaint contends that investors were taken by surprise when the company announced that it needed to substantially increase its reserves, thereby reducing its book value. 

Banro Mine in Democratic Republic of the Congo

When a mining company touts its close relationships with local populations, investors don’t expect to find out that the company and population are at war. But the complaint for this securities class action claims that Banro Corporation misrepresented its situation that badly in the Democratic Republic of the Congo (DRC). While local militias attacked the company’s employees, supply convoys, and property, demanding that the company make good on its promises to help the people it had relocated, the company hid the violence and instability, thus violating the Securities Exchange Act of 1934.

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