Jul 2, 2019 | Securities Class Action Archive
A shareholder class action complaint has been filed against Intersect ENT, Inc. (“Intersect”) on behalf of investors who purchased shares of Intersect stock (NasdaqGM: XENT) between August 1, 2018 and May 6, 2019 (the “Class Period”).
If you purchased shares of Intersect ENT and suffered damages, please click Join a Securities Class Action or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the class action investigation or lawsuit.
XENT investors have until July 15, 2019 to move the Court to serve as lead plaintiff.
Intersect is a commercial drug delivery company that purports to develop products for patients with ear, nose, and throat conditions. Intersect’s PROPEL family of products are used in conjunction with sinus surgery, and the Company’s SINUVA sinus implant is used to treat patients who have had surgery yet suffer from recurrent sinus obstruction due to polyps.
According to the complaint, during the Class Period, the defendants made a series of false and misleading statements to investors, and failed to disclose that: (1) Intersect lacked adequate reimbursement representatives to ensure physicians had access to SINUVA; (2) that, as a result, Intersect’s sales force would focus on ensuring reimbursement; (3) that, as a result, the Company’s sales representatives were less focused on driving sales; (4) that physicians were less likely to adopt Intersect’s SINUVA due to transaction costs associated with seeking reimbursement; and (5) that Intersect would increase staffing to address these issues.
On August 1, 2018, before the market opened, Intersect disclosed that it faced certain challenges with the launch of SINUVA, which had negatively impacted Intersect’s second quarter 2018 financial results. On this news, the Company’s share price fell $6.30 per share, or nearly 20% in value, to close on August 1, 2018 at $26.05 per share.
On May 6, 2019, Intersect disclosed a first quarter 2019 loss of $10.8 million and lowered guidance for the remainder of 2019. Intersect also reported that defendant Earnhardt, Intersect’s CEO of 11 years, resigned. On this news, Intersect’s share price fell an additional $8.05 per share, or more than 25% in value, to close on May 7, 2019 at $25.10 per share.
Jun 28, 2019 | Consumer Protection, Employment & Technology Archive
Kehoe Law Firm, P.C. Investigating Potential Claims on Behalf of Victims of Dominion National’s Cyberattack.
Bleepingcomputer.com reported that “[c]ustomers of Dominion National dental and vision insurer and administrator started to receive notifications about a potential intrusion on the company’s computer systems that may have exposed personal information to an unauthorized party. Reportedly, “[t]he breach may have occurred almost nine years ago, on August 25, 2010, and was uncovered only recently following an internal alert.” Bleepingcomputer.com also reported that “the company assesses that the systems accessed without authorization included information like names and postal addresses, dates of birth, email addresses, social security numbers, taxpayer IDs, bank details (account, routing numbers), as well as member ID, group, and subscriber numbers.”
If you believe you were a victim of Dominion National’s data breach and have questions or concerns about Kehoe Law Firm’s data breach investigation or potential legal claims, please contact Kehoe Law Firm, P.C., Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected].
Dominion National, “an insurer and administrator of dental and vision benefits,” posted a “Notice of Data Security Incident,” which stated that the data breach “may have involved information related to Dominion National members, members of plans [it] provide[s] administrative services for, producers, and healthcare providers.”
According to the data incident notice:
On April 24, 2019, through [Dominion National’s] investigation of an internal alert, with the assistance of a leading cyber security firm, [Dominion National] determined that an unauthorized party may have accessed some of [Dominion National’s] computer servers. The unauthorized access may have occurred as early as August 25, 2010. . . .
[Dominion National has] undertaken a comprehensive review of the data stored or potentially accessible from those computer servers and [has] determined that the data may include enrollment and demographic information for current and former members of Dominion National and Avalon vision, and current and former members of plans [Dominion National] provide administrative services for. In addition, the data may include personal information for producers who placed Dominion National and Avalon vision policies, and healthcare providers participating in the insurance programs of Dominion National. The member information may have included names, addresses, email addresses, dates of birth, Social Security numbers, member ID numbers, group numbers, and subscriber numbers. For members who enrolled online through Dominion National’s website, their bank account and routing numbers may have also been included in the data. The provider information may have included names, dates of birth, Social Security numbers, and/or taxpayer identification numbers. The producer information may have included names and Social Security numbers. [Emphasis added.]
Jun 27, 2019 | Securities Class Action Archive
Kehoe Law Firm, P.C. announces that a class action lawsuit was filed on behalf of purchasers of the American Depositary Shares (“ADS”) of Sunlands Technology Group (“Sunlands” or the “Company”) (NYSE: STG) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Sunland’s March 2018 initial public offering (“IPO”). The class action lawsuit seeks to recover compensable damages for shareholders of Sunlands under the federal securities laws.
If you purchased securities of Sunlands and suffered damages, please click Join a Securities Class Action or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the class action lawsuit. STG investors have until August 26, 2019 to move the Court to serve as lead plaintiff.
According to the class action complaint:
Sunlands provides online education services in the People’s Republic of China . . .. Sunlands offers various degree and diploma-oriented post-secondary courses, including preparation courses for the self-taught higher education examination . . . for learners pursuing associate diplomas or bachelor’s degrees, as well as for the entrance examinations of master of business administration programs.
In March 2018, Defendants held the IPO, issuing approximately 13 million American Deposit[a]ry Share[s] . . . to the investing public at $11.50 per ADS, pursuant to the Registration Statement.
By the commencement of this action, Sunlands ADSs traded around $2.28 per ADS, over 80% decline from the IPO price. As a result, investors were damaged.
The class action complaint alleges that
Defendants made false and/or misleading statements and/or failed to disclose that: (1) Sunlands’s student enrollment was declining; (2) Sunlands’s gross billings were declining; (3) Sunlands’s marketing tactics were not as robust as described in the Registration Statement; and (4) as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Additionally, the complaint states that “[t]he price of Sunlands’s ADSs has plummeted since the IPO. Currently, Sunlands’s ADSs trades around $2.28 per ADS, a decline of over 80% from the IPO price.” [Emphasis added.]
Jun 27, 2019 | Securities Class Action Archive
FedEx: Class Action Filed On Behalf of all Persons or Entities Who Purchased, or Otherwise Acquired, FedEx Common Stock Between September 19, 2017 and December 18, 2018, Inclusive
Kehoe Law Firm, P.C. is advising FedEx shareholders that on June 26, 2019, a securities class action lawsuit was filed against FedEx Corporation (“FedEx” or the “Company”) and certain FedEx executives. The class action lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased, or otherwise acquired, FedEx common stock between September 19, 2017 and December 18, 2018, inclusive (the “Class Period”).
According to the class action complaint filed in United States District Court, Southern District of New York, in 2016, FedEx, “a global logistics company that ships goods to commercial and residential customers throughout the world,” “. . . significantly expanded its international operations through its $4.8 billion acquisition of TNT Express N.V. (“TNT”), a Netherlands-based logistics company with operations concentrated in Europe. To date, this has been the largest acquisition in FedEx history. This acquisition instantly added billions of dollars of European revenues to FedEx’s topline and increased the Company’s international revenue mix from 24 percent in fiscal year 2016 to 33 percent in fiscal year 2017.”
The complaint further states that
[a]fter the acquisition closed, FedEx embarked on an aggressive strategy to integrate its legacy European operations with TNT. On March 31, 2017, nine months after completing the acquisition, FedEx issued a three-year operating income improvement target in order for investors to gauge and track the purported benefits of the TNT acquisition and FedEx’s integration efforts. Specifically, the Company stated that, in fiscal year 2020, its integration with TNT would result in a $1.2 billion to $1.5 billion operating income improvement above its fiscal year 2017 reported operating income (the “TNT Income Improvement Target”).
On June 27, 2017, however, TNT’s operations were crippled by a cyberattack known as NotPetya, which involved the spread of a malware virus throughout TNT’s systems (the “Cyberattack”). NotPetya is considered one of the largest cyberattacks in history, having affected a multitude of companies on a global scale. The timing of the attack was particularly problematic for FedEx, as TNT’s systems were paralyzed during the critical period involving the integration of TNT with the Company’s legacy European operations.
. . .
Throughout the Class Period, Defendants continually assured investors about its recovery from the Cyberattack and that any negative impact from the attack was minimal. For example, Defendants told investors that TNT customer volumes were being restored to pre-attack levels and that “despite the cyberattack, the customers stuck with us.” Defendants also stated that TNT integration efforts were successfully progressing and continuously stated that FedEx was “on track” to achieve the TNT Income Improvement Target.
Notwithstanding these positive representations to the market, Defendants made false and misleading statements and/or failed to disclose that: (1) TNT’s overall package volume growth was slowing as TNT’s large customers permanently took their business to competitors after the Cyberattack; (2) as a result of the customer attrition, TNT was experiencing an increased shift in product mix from higher-margin parcel services to lower-margin freight services; (3) the anticipated costs and timeframe to integrate and restore the TNT network were significantly larger and longer than disclosed; (4) FedEx was not on track to achieve the TNT Income Improvement Target; and (5) as a result of these undisclosed negative trends and cost issues, FedEx’s positive statements about TNT’s recovery from the Cyberattack, integration into FedEx’s legacy operations, customer mix, customer service levels, profitability, and prospects lacked a reasonable basis. [Emphasis added.]
Additionally, according to the complaint, ‘[t]he truth about TNT’s deteriorating business was revealed through a series of disclosures,” which culminated in a FedEx stock drop of $22.50 per share (more than 12%) to close at $162.50 on December 19, 2018.
FedEx investors have until August 26, 2019 to move the Court to serve as lead plaintiff in the securities class action lawsuit. If you purchased, or otherwise acquired, FedEx common stock during the Class Period and suffered losses, please click Join a Securities Class Action or contact either John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to discuss your legal options.
Jun 25, 2019 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of shareholders of electroCore, Inc. (NASDAQ: ECOR) to determine whether electroCore violated federal securities laws.
On June 21, 2018, electroCore issued its initial public offering (“IPO”), during which 5.2 million shares of its common stock were sold at $15.00 per share to investors.
On May 14, 2019, electroCore announced disappointing “First Quarter 2019 Financial Results.” On this news, electroCore’s share price fell $1.58, almost 30%, to close at $3.72 on May 15, 2019.
On May 29, 2019, electroCore announced a “Comprehensive Redeployment and Cost Reduction Plan.” As part of the initiative, Chief Executive Officer, Francis Amato, voluntarily agreed to a 10% cut in his base annual compensation. Less than two weeks later, on June 10, 2019, electroCore announced that Frank Amato offered his resignation to electroCore’s board of directors.
electroCore securities have been trading at approximately 88% below the IPO price.
If you purchased electroCore shares and suffered losses during the IPO or after and suffered losses, please contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected].
