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Stock Losses

Psychemedics Hair Testing

Facing a mature market in the US, Psychemedics Corporation looked to the Brazilian market for growth. But according to the complaint for this securities class action, it ruined that possibility by engaging in illegal, anti-competitive behavior in collusion with another company. The complaint says that the two companies entered into an agreement ensuring that Psychomedics Brazil would receive exclusive contracts with hair sample collection points and Omega Brazil would not increase its share of the Brazilian market, despite the fact that Omega’s services were cheaper. Concealing this illegal activity from investors, the complaint says, was a violation of the Securities Exchange Act of 1934.

Streamline Therapeutics Logo

Stemline’s Therapeutics, Inc. had previously misleadingly edited some patient anecdotes about its new drug in its pitch to investors, says the complaint for this securities class action, but it much more seriously misled the public in early 2017, in not reporting a death from known side effects, in violation of both the Securities Act of 1933 and the Securities Exchange Act of 1934.

Meeting Stage with Aratana Logo on Back Wall

Pet medicines too require Food and Drug Administration (FDA) approval. The complaint for this securities class action claims that Aratana Therapeutics was unready to launch a new drug vital to the financial health of the company. The complaint says it did not have manufacturing facilities or FDA approval of them and so could not be ready as projected, but the company hid this in violation of the Securities Exchange Act of 1934.

Kitov Logo

According to the complaint for this class action, Kitov Pharmaceuticals Holdings, Inc. falsified data from its Phase 3 trials, with the resulting inflated stock prices allowing a successful initial public offering (IPO) and secondary public offering (SPO) and providing financial benefits to some company officers. The plan was exposed when the Israeli Securities Authority arrested the company’s CEO. The complaint says that the false statements were violations of Securities Exchange Act of 1934 and caused losses to investors.

Under Armour Shirt

Under Armour can be proud of its spectacular growth—twenty-six consecutive quarters between 2010 and 2016 with an annual growth rate of at least 20%. Yet when its “brand heat” began to wane, the complaint for this class action says, the company tried to hide the fact and even issued bonds with misleading information in the Registration Statement. The complaint lays out these actions as violation of the Securities Exchange Act of 1934 and the Securities Act of 1933.

USANA Supplements

China prohibits multi-level marketing (MLM), so when MLM company USANA Health Sciences, Inc. wanted to enter the Chinese market, it needed to modify its business model. According to the complaint for this securities class action, it didn’t actually do so; instead, it engaged in a number of illicit practices, including violations of the Foreign Corrupt Practices Act and Chinese laws, until Chinese officials opened an investigation of the company. None of this, the complaint says, was disclosed to investors, in violation of the Securities Exchange Act of 1934.

Galena Logo

According to the complaint for this securities class action, Galena Biopharma, Inc. and two doctors schemed to over-prescribe Galena’s opioid drug for off-label uses, inflating stock prices, artificially raising revenues, and running a kickback scheme. The complaint says they hid their schemes from investors, in violation of the Securities Exchange Act of 1934. 

Pebble Mine Location

The Pebble Project envisions a vast mine for copper, gold, silver, and molybdenum—an open-pit mine of possibly two to three miles wide and a mile deep, with a 700-foot tailings dam covering several square miles. Add to that a remote location in Alaska, 200 miles from Anchorage, and severe weather conditions … and that the company has only twelve employees. The complaint for this securities class action claims that Northern Dynasty made public statements purposely underestimating the costs for the Pebble Project and its likelihood of profitability, in violation of the Securities Exchange Act of 1934. 

SITO Mobile Logo

SITO Mobile Ltd. conducted its initial public stock offering (IPO) on September 16, 2016. The complaint for this class action claims that the company made misleading statements to the pubic before, during, and after this event, in violation of the Securities Act of 1933 and the Exchange Act of 1934. First, the complaint says the company did not disclose the highly negative effects of the presidential election on its revenues around the time of its IPO; second, it says that the company’s CEO and CFO were misappropriating the company’s funds. 

Wood Pellets and Rentech Logo

Rentech, Inc. made false or misleading statements in its public statements, the complaint for this securities case alleges, in violation of the Securities Exchange Act of 1934. The statements involve details about plants, repairs, customer agreements, and other things that would have altered the mix of information available to investors, according to the complaint. These include the fact that one of its factories was over 600 miles away from its port, and that the company had overstated its pre-tax gains from a facility sale.

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