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Stock Losses

Global Eagle Annual Report Cover

This securities class action revolves around allegedly misleading statements Global Eagle Entertainment made about its new acquisition, Emerging Markets Communications (EMC). According to the complaint, Global Eagle gave investors updates on EMC’s integration without knowing whether the statements were true, this violating Securities Exchange Act of 1934. The complaint claims that the company had poor internal controls over financial reporting and poor abilities in integrating acquisitions, and that it had not done due diligence on EMC.

Pearson College Physics Textbook Cover

Educational publisher Pearson, PLC seems to have been slow in learning its lessons. According to the complaint for this class action, the company lagged in replacing physical textbooks with digital materials, and when it ran into problems, it tried to hide them, in violation of the Securities Exchange Act of 1934. The complaint claims that the company hid the extent of paper textbook returns, improperly assessing goodwill, and also concealed that it was having problems with its new digital products.

Ultra Beauty Sign on Brick Building

Would you buy used cosmetics or personal care products? The complaint for this securities class action alleges that Ulta Beauty, Inc. stores “cleaned up” returned products, resealed them, and put them back on the shelves, to be sold to customers as if they were new. The complaint says that the company’s failure to disclose this practice violates the Securities Exchange Act of 1934.

Surgical Gloves Made with Kraton Cariflex

Kraton Corporation changed the processing of its Cariflex product in Brazil, and according to the complaint for this securities class action, that resulted in problems. The complaint says that the company hid these problems from investors, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Only after several months did it admit that the changes had led certain customers to reject the product because of processing issues with the material. 

MiMedx Logo

When two former employees filed a whistleblower action against MiMedx Group, Inc., the company at first denied their claims and sued them in return. When analysts published reports on the allegations, MiMedx again issued denials and sued them as well.  But the complaint for this securities class action claims that these denials were a continuation of the company’s false or misleading statements, which violated the Securities Exchange Act of 1934. In actuality, it says, the company had engaged in a channel-stuffing scheme and improperly recognized revenues. 

Cemtrex "C" Logo

The complaint for this securities class action sets forth such a variety of allegations of shady behavior against Cemtrex, Inc. that it’s difficult to believe that a company could conceal so much in a single year. The complaint claims that the company’s public statements were false or misleading, or omitted material facts, in violation of the Securities Exchange Act of 1934. Among the complaint’s allegations are that the company is secretly paying to promote itself, that the company’s audits have been fake, and that the company’s associations have been shady characters who are associated with other companies that have been delisted or prosecuted. 

Invuity Ad for Lighting Product

Invuity, Inc. makes medical products, but it seems to have had difficulty making money. The complaint for this securities class action claims that the company made false or misleading statements during the class period, anticipating “exponential” growth while knowing that its prospects were limited. The complaint claims that the company’s statements, not admitting to its problems and limitations, were violations of the Securities Exchange Act of 1934.

Worker in Safety Gear Gazing at Mountains

The bribery of foreign officials is a violation of the US Foreign Corrupt Practices Act (FCPA), but the complaint for this securities class action says that not telling your shareholders about the bribery is a violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint claims that Graña y Montero, SAA knew that its partner in a highway-building project, Brazilian company Odebrecht, had paid bribes in order to win the construction project.

Netflix Logo on SmartPhone

Netflix allows customers to pay a monthly fee to watch streaming content. The monthly fees are its main source of revenue, and it has called subscription growth its “core performance measurement.” So investors were listening very closely to see what the result of a new price rise would be. The complaint for this class action says that the company issued false or misleading statements, artificially inflating the stock’s price.

AmTrust Financial Services Building

The complaint for this class action claims that AmTrust Financial Services, Inc. violated (1) the Securities Act of 1933, for inaccurate materials for its public offerings, and (2) the Securities Exchange Act of 1934, for “a multi-year accounting fraud.” At issue are financial statements for fiscal years 2012, 2013, 2014, 2015, and 2016, which the company has admitted “should no longer be relied upon.” 

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