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Stock Losses

Ubiquiti Office Conference Room

Instead of maintaining a sales force, technology company Ubiquiti Networks, Inc. claims to spread “brand awareness” via a “user community” that talks directly to its R&D, marketing, and support departments. According to the complaint, however, both this idea and some of the company’s reported figures show more creativity than truth. The company’s statements about these things, plus its failure to disclose subpoenas filed against it, the complaint says, are violations of the Securities Exchange Act of 1934. 

Slot Machines at Wynn Casinio

Nowadays, ethical behavior includes sexual conduct towards employees of those in powerful positions. The complaint for this securities class action claims that, despite Wynn Resorts touting its ethical code in public statements, employees were subject to pressures and even assaults from CEO Steve Wynn. These misleading statements and omissions, the complaint says, were violations of the Securities Exchange Act of 1934. When news emerged of harassment and assaults of employees by Wynn, and the Massachusetts Gaming Commission opened a review, the stock price fell by more than 18%.

Riot Blockchain Logo

An article quoted in the complaint for this securities class action cited a number of red flags for Riot Blockchain, Inc.: “...insider selling soon after the name change, dilutive issuances on favorable terms to large shareholders, SEC filings that are often Byzantine and … evidence that a major shareholder was getting out while everyone else was getting in.” The complaint claims that the company violated the Securities Exchange Act of 1934 by giving investors false or misleading information. A CNBC article quoted in the complaint provides a complicated and suspicious portrait of the company and of its links to its former major shareholder.

CBI Construction

This securities class action claims that Chicago Bridge & Iron Company violated the Securities Exchange Act of 1934 by denying rather than disclosing the extensive problems with its two nuclear power plant construction projects. According to the complaint, the projects were incurring severe overruns, and CBI had liability for them, but the company denied negative reports. 

Platinum Logo

Investors can seldom determine for themselves the truth of a company’s public statements. They rely on the Securities Exchange Act of 1934 and its requirements of truthful disclosures. The complaint for this securities class action alleges that Platinum Pari-Mutuel Holdings, Inc. violated this law by making false or misleading statements about its acquisitions and the future revenues that could be expected, and cites as evidence the Securities and Exchange Commission (SEC) Order suspending trading in the company’s securities. The company’s press releases are characterized by vagueness about its acquisitions and their products and high praise of their effect on the company.

Omega Protein Vessel

If the Omega Protein Corporation was caught once violating federal laws, is it a good move to violate the terms of its resulting plea agreement and continue to attract federal attention? This securities class action was brought on behalf of investors whose investments were jeopardized by the company’s continuing and covert noncooperation. The complaint claims that the company failed to disclose the truth, in violation of the Securities Exchange Act of 1934. 

Caterpillar Machines

This securities class action alleges that Caterpillar, Inc. tried to evade paying US taxes by forming a Swiss subsidiary, Caterpillar S.A.R.L. through which it would pay Swiss taxes of only 4-6%. However, in order for this to be legitimate, CSARL had to carry out substantial operations and have a real business purpose, which the complaint claims it did not. Throughout a whistleblower lawsuit and investigations by the IRS, the US Senate, and others, the complaint claims that the company insisted its tax position was legitimate and it was cooperating with investigations, while it downplayed the risks of its position, in violation of the Exchange Act of 1934. Finally, the complaint says, the IRS and other authorities raided its US headquarters, marking the end of both the class period and the deception.

B&W Logo

Having many projects and engaging in cost cutting can be good things, but in the case of Babcock & Wilcox Enterprises, Inc. (B&W), the complaint for this class action claims, they ended up overstretching the company’s resources, costing money for remediation, and straining other projects. In particular, outsourcing to cheaper companies resulted in lower quality work, in both design and manufacturing, resulting in several projects having to be constructed at a loss and others producing reduced revenues. Still, the complaint says, the company did not disclose these problems to the public, violating the Securities Exchange Act of 1934.

Scynexis Office Building in New Jersey

Scynexis didn’t disclose health and safety risks for its lead drug candidate, says the complaint for this class action. Risks of thrombotic events were uncovered in Phase 1 studies, but according to the complaint, they were not mentioned in the company’s Registration Statement for its initial public offering (IPO) or other filings for the next three years, in order to inflate its stock prices, in violation of the Securities Act of 1933 and the Securities Exchange Act of 1934. 

TD Bank Logo

A March 2017 CBC News article on Toronto-Dominion (TD) Bank, quoted in the complaint for this class action, said that “teller’s sales revenue goals have more than tripled in the past three years.” The result? The complaint claims that this pressure caused employees to take illicit actions that increased revenue at customers’ expense and without their knowledge. However, none of this was revealed in the bank’s public filings, the complaint says, in violation of the Securities Exchange Act of 1934. 

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