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Stock Losses

Grupo Televisa Logo

The payment of bribes is generally considered wrongdoing, but securities class actions like this one, aimed at Grupo Televisa and losses from investments in its American Depository Receipts (ADRs), base their case on the company’s misleading statements or concealment of bribery, which are violations of the Securities Exchange Act of 1934. In this case, the complaint claims that Televisa claimed to be an ethical company and to forbid the payment of bribes, even though it participated in the bribery of a FIFA official to gain the rights to broadcast soccer games.

Sprouts Farmers Market Store Interior

Prior to a public offering of stock, companies are required to disclose events or uncertainties, including any known trends, that may cause a change in future financial figures. The complaint for this securities class action alleges that Sprouts Farmers Market, Inc. compiled offering documents that did not meet this requirement and violated of the Securities Act of 1933. According to the complaint, the documents discussed the risk of deflation in the abstract, but did not note that deflation had already begun for certain products. 

Rewalk Exoskeleton

Complex medical devices are regulated by the Food and Drug Administration (FDA). If a company doesn’t have FDA approval for a device, it doesn’t have a product. The complaint for this securities class action claims that Rewalk Robotics Ltd. could not provide the FDA with an adequate plan for a post-market surveillance study of its exoskeletons, and that it also failed to inform investors of the reasons for the study, the FDA’s safety concerns, its failure to respond adequately, or the risks these things posed to the company, in violation of the Securities Act of 1935 and the Exchange Act of 1934.

Interior of Foot Locker Store

According to the complaint for this class action, Foot Locker, known for its stores selling athletic shoes, indicated it was expecting growth when sales were actually on the decline. The complaint cites various public statements that it claims were violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Also, during the class period, the complaint claims that officers of the company sold nearly 200,000 of their personal shares of company stock. 

Akorn Logo

In April 2017, Akorn, Inc. entered into a merger agreement with Fresenius SE & Co. KGaA, under which Fresenius would acquire Akorn, but this securities class action is not about that proposed merger. It’s about the allegedly false or misleading statements that Akorn made in the time before the merger was due to close, indicating that it complied with FDA requirements and that it had adequate internal controls. These statements, the complaint claims, misled investors, in violation of the Securities Exchange Act of 1934, as later questions were raised about the integrity of Akorn’s data related to product develpment.

Sign on Building Saying "Henry Schein" and "NASDAQ"

Henry Schein, Inc.’s Form 10-Q for the first quarter of 2013 said that “the health care industry has increasingly focused on cost containment” including through the growth of buying groups. But the company seems to have been determined not to give its customers what they wanted. The complaint for this securities class action alleges that the company secretly agreed with competitors to refuse price breaks to buying groups, in violation of antitrust laws, and without disclosing this illegal activity to investors, in violation of Securities Exchange Act of 1934. 

Colorful Stock Price Indicators

Regulus Therapeutics, Inc. seemed to have developed a promising new drug that cut treatment time for hepatitis C in half. During the class period, Regulus claimed that RG-101 was safe and well-tolerated, even though two patients had come down with serious cases of jaundice. But the complaint for this class action claims that the company denied that the drug was responsible, even though it knew better, in violation of the Securities Exchange Act of 1934.

DaVita Dialysis Facility

Perhaps the most startling detail of this securities class action is that 75% of DaVita, Inc.’s net income was dependent on an illicit “kickback” relationship. The complaint says DaVita made large donations to the nonprofit American Kidney Fund (AKF); the AKF used the funds to pay for commercial insurance policies for DaVita’s patients; then DaVita billed the commercial insurers a total amount that was much more than it had donated to AKF. However, the complaint’s main point is that the company’s failure to disclose this relationship and its “steering” practices were violations of the Securities Exchange Act of 1934.

Living Room with RH Modern Furniture

Launching a new furniture line takes time, but the complaint for this securities class action claims that RH, Inc. was nowhere near prepared for the launch of its RH Modern initiative. The complaint alleges that the launch was a “debacle” because of “a near complete lack of inventory.” Concealing its lack of preparedness, the complaint claims, was a violation of the Securities Exchange Act of 1934.