May 13, 2020 | Securities Class Action Archive
Hamilton Beach Brands Holding Co. Securities Investigation On Behalf of HBB Shareholders – Shareholders Who Have Suffered Losses Greater Than $100K Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating securities claims on behalf of shareholders of Hamilton Beach Brands Holding Co. (“Hamilton Beach” or the “Company”) (NYSE: HBB).
Hamilton Beach Discovers Certain Accounting Irregularities
On May 11, 2020, Hamilton Beach announced that it “discovered certain accounting irregularities with respect to the timing of recognition of selling and marketing expenses and the classification of certain expenditures within the statement of operations at its Mexican subsidiary.” Hamilton Beach also disclosed that its “Audit Review Committee has commenced an internal investigation, with the assistance of outside counsel and other third-party experts, which is primarily focused on realizability of certain assets of the Mexican subsidiary in order to determine the impact these matters may have on the Company’s financial results.”
On this news, shares of Hamilton Beach stock dropped by approximately 9% to close at $10.43 per share.
Hamilton Beach investors who purchased, or otherwise acquired, HBB common stock and suffered financial losses greater than $100K are encouraged to complete Kehoe Law Firm’s Securities Class Action Questionnaire, contact Kevin Cauley, Director, Business Development, (215) 792-6676, Ext. 802, or e-mail [email protected].
May 13, 2020 | Consumer Protection, Employment & Technology Archive
Magellan Health Reports Ransomware Attack – Records Included Personal Information (E.g., Name, Address, Employee ID Number) and W-2 or 1099 Details (E.g., Social Security Number or Taxpayer ID Number)
Kehoe Law Firm, P.C. is making consumers aware that Magellan Health, Inc. submitted a breach notification sample to the State of California Department of Justice, Office of the Attorney General, stating that on April 11, 2020 Magellan Health was “the victim of a criminal ransomware attack.”
Magellan’s breach notification stated, among other things, that “[t]he unauthorized actor gained access to Magellan’s systems after sending a phishing email on April 6 that impersonated a Magellan client.” The breach notification also stated that “prior to the launch of the ransomware, the unauthorized actor exfiltrated a subset of data from a single Magellan corporate server, which included some . . . personal information,” and that “[i]n limited instances, and only with respect to certain current employees, the unauthorized actor also used a piece of malware designed to steal login credentials and passwords.”
Magellan Health reported that “[t]he exfiltrated records include personal information such as name, address, employee ID number, and W-2 or 1099 details such as Social Security number or Taxpayer ID number and, in limited circumstances, may also include usernames and passwords.” [Emphasis added.]
Have You Been Impacted by A Data Breach?
If so, please either contact Kehoe Law Firm, P.C. Partner Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], complete the form on the right or e-mail [email protected] for a free, no-obligation case evaluation of your facts to determine whether your privacy rights have been violated and whether there is a basis for a data privacy class action.
Examples of the type of relief sought by data privacy class actions, include, but are not limited to, reimbursement of identity theft losses and of out-of-pocket costs paid by data breach victims for protective measures such as credit monitoring services, credit reports, and credit freezes; compensation for time spent responding to the breach; imposition of credit monitoring services and identity theft insurance, paid for by the defendant company; and improvements to the defendant company’s data security systems.
Data privacy class actions are brought on a contingent-fee basis; thus, plaintiffs and the class members do not pay out-of-pocket attorney’s fees or litigation costs. Subject to court approval, attorney’s fees and litigation costs are derived from the recovery obtained for the class.
May 12, 2020 | Securities Class Action Archive
SEC Announces That Morgan Stanley Smith Barney LLC Charged With Providing Misleading Information To Retail Clients
Kehoe Law Firm, P.C. is making investors aware that on May 12, 2020, the Securities and Exchange Commission announced that Morgan Stanley Smith Barney LLC (“MSSB”) has agreed to settle charges that it provided misleading information to clients in its retail wrap fee programs regarding trade execution services and transaction costs. MSSB has agreed to pay a $5 million penalty that will be distributed to harmed investors.
According to the SEC, wrap fee programs offer accounts in which clients pay an asset-based “wrap fee” that covers investment advice and brokerage services, including trade execution. According to the SEC’s order, MSSB marketed its wrap fee accounts as offering clients professional investment advice, trade execution, and other services within a “transparent” fee structure. From at least October 2012 until June 2017, some of MSSB’s marketing and client communications gave the impression that wrap fee clients were not likely to incur additional trade execution costs. During that period, however, the SEC’s order finds that some MSSB managers routinely directed wrap fee clients’ trades to third-party broker-dealers for execution, which in some instances resulted in MSSB clients paying additional transaction fees that were not visible to them. As a result of MSSB’s conduct, the order finds that certain MSSB clients were unable to assess the value of the services received in exchange for the wrap fee paid to MSSB.
Without admitting or denying the findings, MSSB, according to the SEC, consented to the SEC’s order, which finds that MSSB violated provisions of the Investment Advisers Act of 1940, imposes a $5 million penalty, and includes a censure and a cease-and-desist order. The order also creates a Fair Fund to distribute the penalty paid by MSSB to harmed investors.
Source: U.S. Securities and Exchange Commission – SEC.gov
May 12, 2020 | Securities Class Action Archive
Recro Pharma Securities Investigation – REPH Investors Who Suffered Financial Losses Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is conducting an investigation into potential securities fraud by Recro Pharma, Inc. (“Recro Pharma” or the “Company”) (NASDAQ: REPH) and certain of its officers.
Recro Pharma Revises Guidance Due To Recent Developments
On May 11, 2020, Recro Pharma announced (“Recro Reports First Quarter 2020 Financial Results and Provides Update on COVID-19 Response and Impact“) that
[f]or 2020, the Company is revising its guidance as a result of recent developments, including:
Increased competition from one of [Recro Pharma’s] key customer’s competitors for certain product strengths that had previously been out of the market was trending at an approximate 30% of market share level, but recently has recovered to a greater sustained percentage of approximately 50% market share. This has impacted both anticipated future manufacturing volumes and profit sharing;
Slower than expected new business growth, which [Recro Pharma] believe[s] is primarily attributable COVID-19. COVID-19 has required different ways of meeting and contacting customers, and has slowed customer access, and caused reassessment of plans for development services by some customers and prospects for a variety of reasons, such as concerns about availability of development funding, timing of clinical trials, etc.; and
Notifications by two of [its] customers of discontinuations for two commercial product lines, that resulted in a decrease of approximately $4 million on previous 2020 revenue guidance and is estimated to have an annual impact to 2021 revenue of approximately $7 million to $8 million. [Emphasis added.]
Recro Pharma also announced that it “now expects its 2020 revenue to be in the range of $80-$85 million.”
On this news, shares of Recro Pharma stock dropped by approximately 40% from an opening share price of $8.42 per share to a closing price of $5.08 per share.
Recro Pharma investors who purchased, or otherwise acquired, Recro Pharma common stock and suffered financial losses are encouraged to contact Kehoe Law Firm, P.C. via e-mail to [email protected] or by completing the form on the right.
May 11, 2020 | Consumer Protection, Employment & Technology Archive
Kehoe Law Firm, P.C. Investigating Claims On Behalf Of U.S. Consumers Who Purchased Or Owned Recalled MALM Or Other IKEA Chests Or Dressers
The U.S. Consumer Product Safety Commission in conjunction with IKEA issued a voluntary recall notice on June 28, 2016 and again on November 21, 2017 regarding MALM and other IKEA chests and dressers that do not comply with the requirements of the U.S. voluntary industry standard (ASTM F2057-14). The children’s and adult chests and dressers, according to the recall, are unstable if they are not properly anchored to the wall, posing serious tip-over and entrapment hazards that can result in injuries or death to children.
The recalled children’s and adult chests and dressers include 3-drawer, 4-drawer, 5-drawer and three 6-drawer models, as well as other non-MALM models.
Class Action Lawsuit Filed Against IKEA US Retail LLC and IKEA North America Services, LLC
U.S. consumers who purchased or owned a chest or drawer included in IKEA’s recall notices should be aware that a class action lawsuit was filed on May 6, 2020 in United States District Court, Eastern District of Pennsylvania, against IKEA US Retail LLC and IKEA North America Services, LLC alleging, among other things, that
[a]lthough IKEA promised a ‘full refund’ to all owners who requested a refund in connection with the recall, this was a mirage . . .. Most purchasers of the defective chests and dressers did not receive notice of the recall, as a consequence of IKEA’s decision not to contact purchasers directly by mail, email, text or other means. Further, plaintiffs and class members who were aware of the recall received no refund, even though Plaintiffs and many other consumers tried to return the defective and dangerous chests and dressers and sought the full refund promised under the voluntary recall. [Emphasis added.]
According to the class action complaint,
IKEA failed to develop communications concerning the recall that were effective in reaching purchasers of the defective and dangerous chests and dressers; instead, IKEA carried out an ineffectual and inadequate recall campaign that 1) most purchasers of the chests and dressers never became aware of, 2) failed to motivate purchasers to respond to the recall’s promise to provide a refund for recalled items returned to IKEA and 3) did not always provide the cash refund IKEA had promised in its announcement and re-announcement of the recall.[]
Additionally, IKEA failed to take necessary action to contact owners of its defective products as quickly as possible in order to hasten their removal from homes of American consumers, leaving millions of defective and dangerous chests and dressers accessible to consumers and their children.
IKEA failed to communicate accurate and understandable information in a timely and effective manner to the public about the defective chests and dressers, the hazards they presented to children, and the availability of refunds and wall-anchoring services. [Emphasis added.]
Recalled MALM And Non-MALM Chests and Dressers & IKEA’s Voluntary Product Recall Notices
The recalled children’s and adult chests and dressers include the MALM 3-drawer, 4-drawer, 5-drawer and three 6-drawer models and other non-MALM models. The recalled children’s chests and dressers are taller than 23.5 inches; recalled adult chests and dressers are taller than 29.5 inches. The MALM chests and dressers are constructed of particleboard or fiberboard and are white, birch (veneer), medium brown, black-brown, white stained oak (veneer), oak (veneer), pink, turquoise, grey, grey-turquoise, lilac, green, brown stained ash (veneer), and black. A 5-digit supplier number, 4-digit date stamp, IKEA logo, country of origin and “MALM” are printed on the underside of the top panel or inside the side panel.
To view recall details and information about other chest and dresser models subject to the recall, please click either “IKEA Reannounces Recall of MALM and Other Chests and Dressers Due to Serious Tip-Over Hazard,” or “Non-MALM Chest/Dresser Models.”
To view IKEA’s recall notice dated November 21, 2017, please click “IKEA Reannounces Recall of MALM and Other Models of Chests and Dressers Due to Serious Tip-over Hazard; 8th Child Fatality Reported; Consumers Urged to Choose Between Refund or Repair.”
To view IKEA’s recall notice dated June 28, 2016, please click “Following an Additional Child Fatality, IKEA Recalls 29 Million MALM and Other Models of Chests and Dressers Due to Serious Tip-Over Hazard; Consumers Urged to Anchor Chests and Dressers or Return for Refund.”
U.S. purchasers or owners of recalled MALM and non-MALM chests or dressers obtained from IKEA that have been denied a cash refund for the recalled chests or dressers are encouraged to contact Kehoe Law Firm, P.C. by completing the form on the right or sending an e-mail to [email protected].
