May 25, 2017 | Securities Class Action Archive
Shareholder Alert – Investigation on Behalf of Avinger Shareholders
Kehoe Law Firm, P.C. announces the commencement of a securities class action lawsuit on behalf of Avinger, Inc. (NASDAQ: AVGR) shareholders who purchased shares pursuant and/or traceable to Avinger’s Stock Offering on or about January 30, 2015.
Allegations of False & Misleading Statements in AVGR IPO Documents
Avinger designs, manufactures, and sells medical devices used to treat patients with peripheral arterial disease. Avinger focuses on introducing products based on its lumivascular platform, which is an intravascular image-guided system.
The class action complaint alleges that the Registration Statement and Prospectus filed for the Company’s Initial Public Offering contained materially false and misleading statements and/or failed to disclose that:
(1) Avinger did not have adequate sales and marketing personnel to increase sales of its lumivascular platform products and to commercialize Pantheris;
(2) the Company already experienced problems with the robustness of its lumivascular platform devices, including Pantheris;
(3) physicians and hospitals were requiring more extensive and comprehensive training and education on the benefits of Avinger’s products to convince them to adopt and implement its lumivascular platform products compared to competing products and procedures available in the market;
(4) the Company would not be able to achieve a rapid ramp rate for increased sales of its lumivascular platform; and
(5) as a result, Avinger was experiencing lower sales and revenues.
Avinger priced its IPO at $13 per share on January 30, 2015. Since the IPO, Avinger stock has fallen to a recent close of $0.36 per share on May 25, 2017.
AVGR Stock Losses?
If you purchased or otherwise acquired Avinger shares pursuant or traceable to the IPO and would like to speak privately with a securities attorney to contribute to or learn more about the investigation, please complete the form to the right or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; or send an e-mail to [email protected].
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.
May 25, 2017 | Securities Class Action Archive
Shareholder Alert – Investigation of Potential Securities Claims on Behalf of Investors of Petrofac Ltd. (OTC: POFCY)
Kehoe Law Firm, P.C. is investigating potential claims on behalf of purchasers of Petrofac Ltd. involving possible securities law violations related to a bribery, corruption and money laundering investigation by the UK Serious Fraud Office.
Bribery, Corruption and Money Laundering Investigation
On May 12, 2017, the U.K.’s Serious Fraud Office announced that it has launched an investigation into Petrofac’s activities, on suspicion of “bribery, corruption and money laundering.” Following this news, Petrofac’s stock dropped significantly to its lowest level since June 2016.
Then, on May 25, 2017, Petrofac announced the UK Serious Fraud Office had arrested and questioned the company’s CEO and COO. Both were released without charge. In addition, the Company’s board suspended the COO and precluded the CEO from involvement in any matters connected to the SFO investigation.
On this news, the price of Petrofac securities fell by nearly 30%.
Petrofac Stock Losses?
If you purchased or otherwise acquired Petrofac shares before May 25, 2017 and would like to speak privately with a securities attorney to contribute to or learn more about the investigation, please complete the form to the right or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; or send an e-mail to [email protected].
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.
May 9, 2017 | Consumer Protection, Employment & Technology Archive
CFPB Alleges Companies Deceived Consumers About Debt That Was Not Legally Owed
On April 27, 2017, the Consumer Financial Protection Bureau (“CFPB”) took action against four online lenders – Golden Valley Lending, Inc., Silver Cloud Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial, Inc. – for deceiving consumers by collecting debt they were not legally owed. In a suit filed in federal court, the CFPB alleges that the four lenders could not legally collect on these debts because the loans were void under state laws governing interest rate caps or the licensing of lenders. The CFPB alleges that the lenders made deceptive demands and illegally took money from consumer bank accounts for debts that consumers did not legally owe, and it seeks to stop the unlawful practices, recoup relief for harmed consumers, and impose a penalty.
“We are suing four online lenders for collecting on debts that consumers did not legally owe,” said CFPB Director Richard Cordray. “We allege that these companies made deceptive demands and illegally took money from people’s bank accounts. We are seeking to stop these violations and get relief for consumers.”
According to the CFPB, Golden Valley Lending, Inc., Silver Cloud Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial, Inc. are online installment loan companies in Upper Lake, California. According to the CFPB, since at least 2012, Golden Valley Lending and Silver Cloud Financial have offered online loans of between $300 and $1,200 with annual interest rates ranging from 440 percent up to 950 percent, and Mountain Summit Financial and Majestic Lake Financial began offering similar loans more recently.
Investigation Showed High-Cost Loans Violated Licensing Requirements or Interest-Rate Caps Making Loans Void
According to the CFPB, its investigation showed that the high-cost loans violated licensing requirements or interest-rate caps – or both – that made the loans void in whole or in part in at least 17 states: Arizona, Arkansas, Colorado, Connecticut, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Montana, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, and South Dakota. The CFPB alleges that the four lenders are collecting money that consumers do not legally owe. The CFPB’s suit alleges that Golden Valley Lending, Silver Cloud Financial, Mountain Summit Financial, and Majestic Lake Financial violated the Truth in Lending Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act. The specific allegations include:
Deceiving consumers about loan payments that were not owed: The lenders pursued consumers for payments even though the loans in question were void in whole or in part under state law and payments could not be collected. The interest rates the lenders charged were high enough to violate usury laws in some states where they did business, and violation of these usury laws renders particular loans void. In addition, the lenders did not obtain licenses to lend or collect in certain states, and the failure to obtain those licenses renders particular loans void. The four lenders created the false impression that they had a legal right to collect payments and that consumers had a legal obligation to pay off the loans.
Collecting loan payments which consumers did not owe: The four lenders made electronic withdrawals from consumers’ bank accounts or called or sent letters to consumers demanding payment for debts that consumers were under no legal obligation to pay.
Failing to disclose the real cost of credit: The lenders’ websites did not disclose the annual percentage rates that apply to the loans. When contacted by prospective borrowers, the lenders’ representatives also did not tell consumers the annual percentage rate that would apply to the loans.
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB is authorized to take action against institutions engaged in unfair, deceptive, or abusive acts or practices, or that otherwise violate federal consumer financial laws like the Truth in Lending Act. The CFPB is seeking monetary relief for consumers, civil money penalties, and injunctive relief, including a prohibition on collecting on void loans, against Golden Valley and the other lenders. The Bureau’s complaint is not a finding or ruling that the defendant have actually violated the law.
The CFPB’s Complaint Filed In United States District Court Can Be Viewed At:
http://files.consumerfinance.gov/f/documents/201704_cfpb_Golden-Valley_Silver-Cloud_Majestic-Lake_complaint.pdf
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.
May 3, 2017 | Blog
Have You Received Unwanted, Unsolicited or Harassing Telephone, Telemarketing, Autodial or Robocalls and/or Text Messages?
Recently, a number of class action lawsuits have been filed against companies alleging telemarketing and debt collection calls and practices that violate the Telephone Consumer Protection Act, 47 U.S.C. § 227 (“TCPA”). Enacted in 1991, the TCPA places restrictions on making telemarketing calls and the use of automatic telephone dialing systems or prerecorded or artificial voice messages. It also provides for statutory damages.
Federal Communications Commission & TCPA
According to the Federal Communications Commission, the TCPA requires the following:
For telemarketing calls:
- Requires anyone making a telephone solicitation call to your home to provide his or her name, the name of the person or entity on whose behalf the call is being made, and a telephone number or address at which that person or entity can be contacted.
- Prohibits telephone solicitation calls to homes before 8 a.m. or after 9 p.m.
- Requires telemarketers to comply immediately with any do-not-call request made during a call.
For robocalls/texts:
- Requires a consumer’s permission, regardless of any existing relationship, before a robocall/text can be made to a wireless phone. These calls can include political, polling, and other non-telemarketing robocalls.
- Allows consumers to take back their permission to be called or texted in any reasonable way.
- Consent to be called or texted cannot be a condition of a sale or other commercial transaction.
- Requires callers to update their lists after dialing a wrong number the first time.
TCPA & The National Do-Not-Call Registry
The TCPA also established the National Do-Not-Call Registry that covers all telemarketers (with the exception of certain non-profit organizations), applies to both landline and wireless phones, as well as interstate and intrastate calls.
What Can I Do If I Believe My Rights Have Been Violated?
If you have received unwanted, unsolicited or harassing telephone, telemarketing, autodial or robocalls and/or text messages and would like to speak privately with an attorney to learn more about your potential legal rights, please complete the form to the right or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]; John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; or send an e-mail to [email protected].
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.
Apr 6, 2017 | Securities Class Action Archive
BofI Holding, Inc. – New York Post Reports Federal Probe into Possible Money Laundering at Bank of Internet
Kehoe Law Firm, P.C. is investigating potential claims on behalf of those who purchased securities or common stock in online lender Bank of Internet, also known as BofI, publicly traded as BofI Holding, Inc. under the ticker symbol BOFI (NASDAQ: BOFI).
Department of Justice and Office of Comptroller of Currency Investigate BofI
On March 31, 2017, in an article titled “Feds Probe Bank of Internet for Possible Money Laundering,” the New York Post reported a probe by federal agents into possible money laundering at BofI. The newspaper reported that sources said the Justice Department, leading the investigation, has interviewed at least one former BofI employee and that one focus of the probe is BofI’s CEO, Gregory Garrabrants. Although there were no accusations of criminal activity, the New York Post reported that, according to people familiar with the investigation, part of the probe focuses on regulatory filings BofI submitted by to the Office of Comptroller of Currency, which is also part of the investigation.
Other Lawsuits Filed Regarding BofI’s Accounting and Money Laundering Controls
According to the New York Post, “BofI’s accounting and money laundering controls have been the subject of lawsuits for at least two years – since a former auditor, Charles Erhart, accused Garrabrants in a separate civil suit of flouting disclosure rules.”
BofI’s Stock Drop & What Investors Can Do?
Following the news of the federal probe, BofI’s stock declined. Kehoe Law Firm, P.C. is investigating whether BofI and certain of its officers may have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. If you have information regarding the investigation, purchased BofI shares, or would like to speak privately with a securities attorney to contribute to or learn more about the investigation, please complete the form to the right or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]; John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; or send an e-mail to [email protected].
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.
