Mar 18, 2017 | Securities Class Action Archive
The Kehoe Law Firm, P.C. is investigating potential claims on behalf of purchasers of National General Holdings Corp. common stock or securities concerning whether there was a material weakness in the company’s internal controls over financial reporting as of December 31, 2015, and whether the company and certain of its executive officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On March 16, 2017, after the markets closed for trading, National General Holdings announced that it will be unable to file its Annual Report for the fiscal year ended December 31, 2016 within the 15 day extension granted by the Form 12b-25 filed with Securities and Exchange Commission on March 1, 2017. It also revealed that the company expects to disclose that, as part of its evaluation of its internal controls over financial reporting, management had determined there were material weaknesses in internal control over financial reporting as of December 31, 2015. These material weaknesses reportedly relate to the precision and sufficiency of formal documentation, including determining the completeness and accuracy of reports used in this operation of management’s review procedures as it relates to the following areas:
- Investment accounting – the documentation of investment reconciliations and the documentation of the procedures for review of securities for other than temporary impairment and valuation of investments;
- Accounting for acquisitions – in particular the documentation related to the opening balance sheet and documentation related to the development of assumptions used in the valuation of intangibles;
- Accounting for income taxes – the documentation of the procedures for review of the income tax provision; and
- Completeness and accuracy of reports used in accounting for premiums, investments, loss reserves and claims.
On this news, the company’s share price fell $0.77, or 3.21%, in intraday trading on March 17, 2017.
If you purchased or otherwise acquired National General Holdings 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 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.
Mar 18, 2017 | Securities Class Action Archive
The Kehoe Law Firm, P.C. is investigating potential claims on behalf of purchasers of AmTrust Financial Services, Inc. common stock or securities who allege that the company’s share were inflated as a result of accounting errors and material weaknesses in internal controls over financial reporting, and whether AmTrust and certain of its executive officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Material Weaknesses In Internal Controls
On February 27, 2017, AmTrust disclosed that it had “identified material weaknesses in its internal control over financial reporting that existed as of December 31, 2016, specifically related to ineffective assessment of the risks associated with the financial reporting, and an insufficient complement of corporate accounting and corporate financial reporting resources within the organization.”
On this news, AmTrust’s share price fell $5.32, or 19.23%, to close at $22.34 on February 27, 2017.
AmTrust to Restate Prior Financial Results
On March 16, 2017, AmTrust announced that it needed additional time to complete the consolidated financial statements and assessment of internal controls over financial reporting for the fiscal year ended December 31, 2016. It also revealed that, in connection with the preparation and audit of the financial statements, the Audit Committee of the AmTrust Board of Directors, concluded that the company’s previously issued consolidated financial statements for 2014 and 2015 (including for each of the four quarters of 2015) as well as for the first three quarters of 2016 should be restated and should no longer be relied upon.
In addition, AmTrust reported that the certain of the company’s earnings and press releases, and related communications, to the extent that they relate to periods covered by the upcoming restatement, as well as the company’s fourth quarter and fiscal 2016 earnings release dated February 27, 2017, should no longer be relied upon. Additionally, AmTrust cautioned that the reports of BDO USA LLP, the company’s former independent auditor, on the company’s consolidated financial statements for 2014 and 2015, including its opinions on the effectiveness of internal control over financial reporting for such periods, likewise should no longer be relied upon.
On this news, AmTrust’s share price fell $4.03, or 18.65%, to close at $17.58 on March 17, 2017.
If you purchased or otherwise acquired AmTrust shares between January 1, 2014 and March 16, 2017, 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 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.
Mar 17, 2017 | Consumer Protection, Employment & Technology Archive
The Kehoe Law Firm, P.C. is investigating potential claims on behalf of purchasers of FTD Companies, Inc. (NASDAQ: FTD) stock or securities who allege that the company’s share price was inflated as a result of accounting errors. In particular, the firm’s investigation concerns reported errors relating to cross-border indirect taxes and whether FTD and certain of its executive officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On March 14, 2017, FTD reported a net loss of $86.4 million in its fourth quarter ended December 31, 2016, and announced that as a result of an incorrect assessment of certain cross-border indirect taxes, the company would need to restate its previously issued consolidated financial statements for the years ended December 31, 2015 and 2014 and for the quarters within the years ended December 31, 2016 and 2015.
FTD further reported that “the aggregate impact of correcting these prior period errors all within the year ended December 31, 2016 would have been material to the company’s current year consolidated financial statements.” Further, the cumulative effect of the changes to retained earnings as of January 1, 2014, the earliest date presented in the consolidated financial statements for the year ended December 31, 2016, was a reduction of $12.4 million. On this news, the company’s share price fell $5.54, or 23.69%, to close at $17.85 on March 15, 2017.
If you purchased or otherwise acquired FTD 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.ft
Mar 10, 2017 | Consumer Protection, Employment & Technology Archive
The Kehoe Law Firm, P.C. announces the filing of a class action lawsuit on behalf of those who purchased or otherwise acquired NantHealth, Inc. (“NantHealth or “Company”) securities pursuant or traceable to the Company’s initial public offering on or about June 2, 2016 (the “IPO”) or on the open market between June 2, 2016 and March 3, 2017, both dates inclusive (the “Class Period”).
According to the Company, NantHealth (NASDAQ:NH) is a transformational healthcare cloud-based IT company that purports to provide cloud-based platform solutions that converge science and technology through integrated clinical platform to provide actionable health information at the point of care for critical illnesses.
In September 2014, NantHealth’s founder and CEO, Patrick Soon-Shiong, announced a $12 million donation to the University of Utah in connection with an initiative to find genetic clues for the cause of diseases, including several cancers and amyotrophic lateral sclerosis.
On March 6, 2017, STAT, a news organization focused on medical industry reporting, published an article alleging that pursuant to the terms of Soon-Shiong’s donation to the University of Utah, the university was effectively required to spend $10 million on genetics analysis performed by NantHealth, an arrangement which enabled NantHealth to inflate by more than 50 percent the number of test orders it reported to investors in 2016. Also, the article quoted two tax experts stating that the deal “appeared to violate federal tax rules governing certain charitable donations” and “amount[ed] to indirect self-dealing by Soon-Shiong and his foundations.” A link to the article is available here.
Following this news, NantHealth’s share price fell $1.67, or 23.29%, to close at $5.50 on March 6, 2017.
The complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Soon-Shiong funneled business to NantHealth through his donation to the University of Utah, pursuant to the contractual terms of which the university was effectively required to spend $10 million on genetics analysis performed by the Company; (ii) consequently, the number of test orders that NantHealth reported to investors was artificially inflated; (iii) the contracts governing Soon-Shiong’s donation to the university violated federal tax law; and (iv) as a result, NantHealth’s public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than May 8, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. The ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
If you purchased NantHealth shares in or after the IPO, or are aware of any facts relating to this investigation, or you would like to learn more information about this 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.
Feb 23, 2017 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating Global Eagle Entertainment Inc. (“Global Eagle” or “Company”) for possible violations of the federal securities law. On February 21, 2017, before the market opened for trading, Global Eagle (NASDAQ: ENT) announced that its CEO, David Davis, and CFO, Tom Severson, had resigned and that the Company expects to delay filing its 2016 Annual Report with the U.S. Securities and Exchange Commission. On this news, Global Eagle’s share price fell $1.74, or 27.97%, to close at $4.48 on February 21, 2017.
Global Eagle’s Announcement
Global Eagle offered few details concerning the reason for the departure of the CEO and CFO. Regarding the filing delay, the Company claimed it was due to “increased size and complexity” after its acquisition of Emerging Markets Communications, as well as “its need to transition the finance department after the prior CFO’s departure and its need to complete additional financial-closing procedures associated with the Company’s material weaknesses in internal control over its financial reporting.”
Evidence of Accounting Problems?
As The Motley Fool reported in a February 21, 2017 article:
The sudden departure of the CEO and CFO, which could be evidence of accounting problems, prompted an investigation from a shareholder rights law firm[,] . . . which said it was looking into possible violations of federal securities laws by Global Eagle.
Global Eagle also said it would file its 10-K after the SEC March 16 deadline, noting among other factors that it needs “to complete additional financial closing procedures associated with the Company’s material weaknesses in internal control over its financial reporting” (emphasis added). Such a statement seems to indicate accounting inconsistencies, which could force the company to restate past financial statements or incur fines from the SEC.
(Full article available here.)
Class Action Lawsuit Filed
On February 23, 2017, a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of those who purchased Global Eagle common stock between July 27, 2016 and February 17, 2017 (the “Class Period”). The Complaint alleges that Global Eagle and certain executive officers violated various provisions of the federal securities laws during the Class Period.
What if I’m a Global Eagle Shareholder?
Those who purchased Global Eagle shares during the Class Period, and who are interested in learning more about our investigation, are encouraged to contact the Kehoe Law Firm, P.C. by completing the form on the right or by calling Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]; John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; or by sending 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.
