Aug 13, 2018 | Securities Class Action Archive
On August 13, 2018, MarketWatch reported (“Hologic’s stock drops after suspension of marketing of Vitalia TempSure device”) that Hologic’s (NasdaqGS: HOLX) stock shares
. . . fell 2.9% in premarket trade Monday, after [Hologic, Inc.] said its Cynosure division will suspend marketing and distribution of its Vitalia TempSure device for heating of vaginal tissue, while it considers the Food and Drug Administration’s concerns over ‘vaginal rejuvenation’ procedures using energy-based devices. Cynosure received a letter from the FDA relating to its MonaLisa Touch laser, but although the letter didn’t mention Vitalia, has elected to consider the concerns and is asking customers to return purchased devices. The company said it has had no reports of adverse effects associated with the Vitalia device and has not been made aware of any patient harm. . . . (Emphasis added.)
Hologic’s Form 8-K in this regard stated:
On July 30, 2018, the FDA issued a public statement and sent letters to a number of companies in the medical aesthetics industry expressing concerns regarding “vaginal rejuvenation” procedures using energy-based devices. As previously disclosed, Hologic, Inc. . . . and its division, Cynosure, received such a letter relating to the MonaLisa Touch® laser (the “MLT Letter”). . . .
Cynosure recently launched the TempSure™ Vitalia handpiece and probe under an FDA 510(k) clearance and was marketing the device for heating of vaginal tissue. Although the FDA did not mention Vitalia in its recent comments or the MLT Letter, Cynosure has carefully considered the FDA’s broader concerns and elected to suspend marketing and distribution of Vitalia handpieces and single-use probes until it has confirmed they meet all regulatory requirements for devices in this category. Cynosure is also asking customers to return any Vitalia handpieces and unused probes they have purchased. Cynosure has had no reports of adverse effects associated with the use of the Vitalia handpiece and probe and has not been made aware of any patient harm associated with their use. A letter describing these decisions is being sent to customers today.
This action is limited to the Vitalia probe and handpiece and does not affect other Hologic gynecology products such as the MonaLisa Touch laser. In addition, the TempSure System remains FDA-cleared and may continue to be used with its various other handpieces, including TempSure Envi.
[Hologic] had previously forecast that revenue from TempSure Vitalia would be approximately $7 million in the fourth quarter of fiscal 2018. In addition, any returns of Vitalia handpieces, unused probes and TempSure systems are expected to be recorded as a reduction to revenue, primarily in the fourth quarter of fiscal 2018. Because the number of these returns is uncertain, Hologic is not able to accurately forecast the financial effect, including any potential impact on the full-year and fourth-quarter financial guidance provided on July 31, 2018, of these decisions at this time. . . . (Emphasis added.)
Aug 7, 2018 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating legal claims on behalf of investors of Maxar Technologies, Ltd. (NYSE: MAXR) regarding possible violations of securities laws.
If you invested in Maxar Technologies, you may have a legal claim. Investors of Maxar Technologies can contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected] or complete the form on the right to learn more about the securities investigation.
MAXR Stock Price Drops More Than 13% On The News of Inflated Assets
On August 7, 2018, Spruce Point Capital Management published a research report alleging that Maxar “has pulled one of the most aggressive accounting schemes Spruce Point has ever seen to inflate Non-IFRS earnings by 79%.”
Specifically, the report asserts that Maxar used its acquisition of DigitalGlobe “to inflate [its] intangible assets” and had “amended its post-retirement benefit plan to book one-time gains” in a manner that “was not fully disclosed across its investor communications”.
Following publication of the Spruce Point report, Maxar’s stock price fell more than 13% to close at $38.44 on August 7, 2018, thereby injuring investors.
SeekingAlpha Reports: “Maxar -6.8% as short seller Spruce Point puts on Strong Sell”
On August 7, 2018, SeekingAlpha reported the following:
Maxar Technologies . . . is 6.8% lower this morning after SA contributor Spruce Point Capital Management takes a short position, citing “100% downside risk” once investors see that earnings are overstated by about 80%.
But it sees 45-55% intermediate downside in a target of $20-$25/share. The stock’s currently at $41.39.
The company’s acquisitions of Space Systems Loral and Digital Globe are starting to fail, Spruce Point notes, with the SSL deal poorly timed and facing cash flow issues.
What’s more, Maxar is run by Howard Lance, a CEO that Spruce Point says has overseen two accounting debacles. At NCR, Lance “appears to have embellished his role as COO of the entire company, whereas his role was limited to the Retail and Financial Groups. Furthermore, Lance has obscured from his biography his leadership roles at two companies requiring financial restatement after admitting material financial control weaknesses.”
MAXR Investors and Shareholders
If you purchased, or otherwise acquired, securities of Maxar Technologies, contact Kehoe Law Firm to learn more about your potential legal rights.
Aug 7, 2018 | Shareholder & Investor Protection
The SEC’s Office of Investor Education and Advocacy recently issued an Investor Bulletin containing the following basic, useful information about index funds:
What Is An Index Fund?
An “index fund” is a type of mutual fund or exchange-traded fund that seeks to track the returns of a market index. The S&P 500 Index, the Russell 2000 Index, and the Wilshire 5000 Total Market Index are examples of market indexes that index funds may seek to track.
A market index measures the performance of a “basket” of securities (e.g., stocks or bonds), which is meant to represent a sector of a stock market, or of an economy. One cannot invest directly in a market index, but because index funds track a market index, they provide an indirect investment option.
What Do Index Funds Contain?
Index funds may take different approaches to track a market index: some invest in all of the securities included in a market index, while others invest in only a sample of the securities included in a market index.
Market indexes often use a company’s market capitalization to decide how much weight that security will have in the index. Market capitalization (or “market cap”) is a measure of the total value of the company’s shares. The total value is equal to the share price times the number of shares outstanding. In a market-cap-weighted index, securities with a higher market capitalization value account for a greater share of the overall value of the index. Some market indexes, such as the Dow Jones Industrial Average, are “price-weighted.” In this case, the price per share will determine the weight of a security.
Some index funds may also use derivatives (like options or futures) to help achieve their investment objective.
How Do Index Funds Invest?
Generally, index funds have generally followed a passive, rather than active, style of investing. This means they aim to maximize returns over the long term by not buying and selling securities very often. In contrast, an actively managed fund often seeks to outperform a market (usually measured by some kind of index) by doing more frequent purchases and sales.
What Are The Costs Associated With Index Funds?
Because index funds generally use a passive investing strategy, they may be able to save costs. For example, managers of an index fund are not actively picking securities, so they do not need the services of research analysts and others that help pick securities. This reduction in the cost of fund management could mean lower overall costs to shareholders. However, keep in mind that not all index funds have lower costs than actively managed funds. Investors are reminded to always be sure to understand the actual cost of any fund before investing.
Fees and expenses reduce the value of one’sinvestment return. If the holdings of two funds have identical performance, the fund with the lower cost generally will generate higher returns for the investor. For more information, see Updated Investor Bulletin: How Fees and Expenses Affect Your Investment Portfolio
What Are Some Risks Of Index Funds?
Like any investment, index funds involve risk. An index fund will be subject to the same general risks as the securities in the index it tracks. The fund may also be subject to certain other risks, such as:
Lack of Flexibility. An index fund may have less flexibility than a non-index fund to react to price declines in the securities in the index.
Tracking Error. An index fund may not perfectly track its index. For example, a fund may only invest in a sampling of the securities in the market index, in which case the fund’s performance may be less likely to match the index.
Underperformance. An index fund may underperform its index because of fees and expenses, trading costs, and tracking error.
Some Things To Keep In Mind Before Investing In A Fund
The SEC recommends that investors carefully read all of the fund’s available information, including the fund’s prospectus and most recent shareholder report. Importantly, funds disclose their portfolio holdings quarterly in Form N-Q and shareholder reports. Usually, this information can be obtained from the fund’s website or one’s financial professional, as well as on EDGAR.
Asking the following questions may help:
What fees and expenses can I expect to pay for buying, owning, and selling this fund?
What specific risks are associated with this fund?
How is the makeup of the fund’s index determined?
How does the fund’s investment strategy fit with my investment goals?
NOTE: In recent years, new types of index funds that track custom-built indexes or benchmarks have become more common. The information provided in the SEC’s investor bulletin may not apply to “non-traditional” index funds, and the SEC encourages investors to review Investor Bulletin: Smart Beta, Quant Funds and other Non-Traditional Index Funds for more information about non-traditional index funds.
Source: Investor.gov
Aug 7, 2018 | Consumer Protection, Employment & Technology Archive
On August 6, 2018, a class action complaint was filed in United States District Court, Central District of California, against Keller Williams Realty, Inc. and other defendants, as of yet unknown, alleging violations of the Telephone Consumer Protection Act (“TCPA”) and related regulations for “negligently, knowingly, and/or willfully contacting Plaintiff on Plaintiff’s home and cellular telephones.”
According to the complaint, Keller Williams contacted Plaintiff on Plaintiff’s home and cellular phone numbers to try and get Plaintiff to purchase the services of Keller Williams. Keller Williams, allegedly, contacted the Plaintiff from telephone numbers (561) 537-1540, (954) 652-9258, (954) 609-0996, (305) 924-1119, and (305) 205-6978. The Plaintiff, according to the complaint, “expressly asked [Keller Williams] multiple times to be removed from [Keller Williams’] call list beginning [in] or about May 2017 and continuing through April 2018.” Further, according to the complaint:
Plaintiff did not give [Keller Williams] prior express written consent for [Keller Williams] to call Plaintiff’s home or cellular telephone for marketing or solicitation purposes. Indeed, during one phone call Plaintiff asked where [Keller Williams] had obtained his phone number, one of Defendant’s agents stated that the phone numbers were obtained from a third party company called “REDX,” a company Plaintiff had no knowledge of, nor had he done business with at any time. (Emphasis added)
Despite Plaintiff’s request for Keller Williams to stop calling, the company “continued to call Plaintiff in an attempt to solicit its services and in violation of the National Do-Not-Call provisions of the TCPA[,] thus repeatedly violating Plaintiff’s privacy.”
Do You Believe You Are a Victim of Illegal Robocalls, Text Messages, “Junk” Faxes or Telemarketing Sales Calls?
If you have received illegal robocalls, text messages, “junk” faxes or telemarketing sales calls, you may be able to recover at least $500 for each illegal call, text or fax you received and, possibly, as much as $1,500 for each illegal call, text message or facsimile that was made either willfully or knowingly in violation of the TCPA.
To help evaluate your potential legal claims under the Telephone Consumer Protection Act, please complete KLF’s confidential Robocall Questionnaire or, if you prefer to speak with an attorney, please complete the form above on the right, e-mail [email protected] or contact Michael Yarnoff, Esq., [email protected], (215) 792-6676, Ext. 804, for a free, no-obligation evaluation of your potential legal rights.
Aug 6, 2018 | Shareholder & Investor Protection
SEC Updates Its List of Unregistered Firms That Use Misleading Information to Primarily Solicit Non-U.S. Investors
On August 6, 2018, the SEC announced that it has updated its list of unregistered firms that use misleading information to primarily solicit non-U.S. investors, adding 16 soliciting entities, four impersonators of genuine firms, and nine bogus regulators.
The updates by the SEC Division of Enforcement’s Office of Market Intelligence, in coordination with the SEC’s Office of Investor Education and Advocacy and the Office of International Affairs, are part of the agency’s continuing effort to protect retail investors.
The SEC’s list of soliciting entities that have been the subject of investor complaints, known as the Public Alert: Unregistered Soliciting Entities (PAUSE) list, enables investors to better inform themselves and avoid being a victim of fraud. The latest additions are firms that the SEC staff found were providing inaccurate information about their affiliation, location, or registration.
Under U.S. securities laws, firms that solicit investors generally are required to register with the SEC and meet minimum financial standards and disclosure, reporting, and recordkeeping requirements.
In addition to alerting investors to firms falsely claiming to be registered, the PAUSE list flags those impersonating registered securities firms and bogus “regulators” who falsely claim to be government agencies or affiliates. Inclusion on the PAUSE list, according to the SEC, does not mean the SEC has found violations of U.S. federal securities laws or made a judgment about the merits of any securities being offered.
Before investing, the SEC strongly encourages individuals to check the background of anyone selling an investment using the free “Check Out Your Investment Professional” search tool at Investor.gov. Additionally, the SEC recommends to always verify that the seller is currently licensed or registered.
Source: SEC.gov
