Apr 9, 2020 | Securities Class Action Archive
RTI Surgical Holdings To Restate Its Previously Issued Audited Financial Statements For The Years Ended December 31, 2014, 2015, 2016, 2017 and 2018, In Addition To Its Unaudited Financial Statements For The Quarterly Periods For 2016-2018 And The Nine Months Ended September 30, 2019
Kehoe Law Firm, P.C. is making investors aware that on April 9, 2020, RTI Surgical Holdings, Inc. (“RTI Surgical” or the “Company”) (NASDAQ: RTIX) announced that it is still “. . . conducting an internal investigation of matters relating to the Company’s revenue recognition practices for certain contractual arrangements, primarily with OEM customers, including the accounting treatment, financial reporting and internal controls related to such arrangements . . ..” RTI Surgical stated that its internal investigation “. . . was precipitated by an ongoing investigation by the Securities and Exchange Commission . . . initially related to the periods 2014 through 2016. The investigation, according to RTI Surgical, “. . . is ongoing, and the Company is cooperating with the SEC in its investigation.” [Emphasis added.]
RTI Surgical also announced that
[o]n April 7, 2020, the Audit Committee of the Board of Directors concluded that the Company will restate its previously issued audited financial statements for the years ended December 31, 2014, 2015, 2016, 2017 and 2018 and its unaudited financial statements for the quarterly periods for 2016-2018 and the nine months ended September 30, 2019 (the “Relevant Periods”). Accordingly, investors should no longer rely upon the Company’s previously released financial statements as of and for the years ended December 31, 2018, 2017, 2016, 2015, and 2014, and the reports on the financial statements and internal control over financial reporting of the Company’s independent registered public accounting firm thereon; or the quarterly financial statements and other financial data released related to the Relevant Periods.
The Company has concluded that revenue for certain invoices should have been recognized at a later date than when originally recognized. In response to binding purchase orders from certain OEM customers, goods were shipped and received by the customers before requested delivery dates and agreed-upon delivery windows. In many instances, the OEM customers requested or approved the early shipments, but the Company has determined that on other occasions the goods were delivered early without obtaining the customers’ affirmative approval. In addition, the Company has concluded that in July 2017, an adjustment was improperly made to a product return provision in the Direct Division. Accordingly, the Company will revise its financial statements to correct these errors and any others as it finalizes the [i]nvestigation. The Company and the Audit Committee of the Board of Directors have discussed these matters with Deloitte & Touche LLP, the Company’s independent registered public accounting firm. [Emphasis added.]
Class Action Lawsuit Filed Against RTI Surgical Holdings, Inc. On Behalf of Investors Who Purchased Shares of RTIX Stock Between March 7, 2016 and March 16, 2020
According to the lawsuit, RTI Surgical throughout the Class Period between March 7, 2016 and March 16, 2020, both dates inclusive, made false and/or misleading statements and/or failed to disclose that: (1) the Company inappropriately recognized revenues with respect to certain contractual arrangements, including other equipment manufacturer customers; (2) RTI Surgical’s internal controls over financial reporting were not effective; (3) as a result, RTI Surgical would be forced to delay the filing of its Form 10-K for fiscal year ended December 31, 2019; and (4) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
RTI Surgical investors who purchased, or otherwise acquired, RTIX securities during the Class Period and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the class action lawsuit or potential legal claims.
Apr 8, 2020 | Securities Class Action Archive
TAL Education Group, “Leading K-12 After-School Tutoring Services Provider in China,” Announces Certain Employee Wrongdoing Discovered in Company’s Routine Internal Auditing Process – TAL Investors Who Suffered Losses Are Encouraged to Contact Kehoe Law Firm, P.C. To Discuss Potential Legal Claims
Kehoe Law Firm, P.C. is making investors aware that on April 7, 2020, TAL Education Group (“TAL Education” or the “Company”) (NYSE: TAL), “a leading K-12 after-school tutoring services provider in China,” announced that the Company discovered
. . . certain employee wrongdoing . . . in the Company’s routine internal auditing process. TAL discovered irregularities and violations of the Company’s business conduct and internal control policies by an employee in the Company’s newly introduced ‘Light Class’ business. Upon such discovery, TAL immediately reported to the local police. The employee has been taken into custody by the local police.
Based upon the Company’s routine internal audit, the Company suspects that the employee of question conspired with external vendors to wrongly inflate ‘Light Class’ sales by forging contracts and other documentations. For the fiscal year 2020 ended February 29, 2020, ‘Light Class’ sales accounted for approximately 3% to 4% of the Company’s total estimated revenues.
TAL Education investors who purchased, or otherwise acquired, TAL securities and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss potential legal claims.
Apr 8, 2020 | Securities Class Action Archive
Zoom Video Communications Shareholder Suit Filed On Behalf Zoom Investors Who Bought, Or Otherwise Acquired, Zoom Securities Between April 18, 2019 and April 6, 2020, Both Dates Inclusive – ZM Investors Who Suffered Losses Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that on April 7, 2020, a class action lawsuit was filed in United States District Court, Northern District of California, on behalf of Zoom Video Communications, Inc. (“Zoom” or the “Company”) (NASDAQ: ZM) investors who purchased, or otherwise acquired, Zoom securities between April 18, 2019 and April 6, 2020, both dates inclusive, (the “Class Period”), seeking to recover damages caused by the Zoom Defendants’ alleged violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
According to the class action complaint:
Throughout the Class Period, [Zoom] Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, [Zoom] Defendants made false and/or misleading statements and/or failed to disclose that: (i) Zoom had inadequate data privacy and security measures; (ii) contrary to Zoom’s assertions, the Company’s video communications service was not end-to-end encrypted; (iii) as a result of all the foregoing, users of Zoom’s communications services were at an increased risk of having their personal information accessed by unauthorized parties, including Facebook; (iv) usage of the Company’s video communications services was foreseeably likely to decline when the foregoing facts came to light; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
The truth about the deficiencies in Zoom’s software encryption began to come to light as early as July 2019. However, due in large part to the Company’s obfuscation, it was not until the COVID-19 pandemic in March and April of 2020, with businesses and other organizations increasingly relying on Zoom’s video communication software to facilitate remote work activity as governments increasingly implemented shelter-in-place orders, that the truth was more fully laid bare in a series of corrective disclosures. As it became clear through a series of news reports and admissions by the Company that Zoom had significantly overstated the degree to which its video communication software was encrypted, and organizations consequently prohibited its employees from utilizing Zoom for work activities, the Company’s stock price plummeted, damaging investors.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages. [Emphasis added.]
Zoom investors who purchased, or otherwise acquired, ZM securities during the Class Period and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the class action lawsuit or potential legal claims.
Apr 7, 2020 | Securities Class Action Archive
Shareholder Derivative Action Filed Seeking To Remedy Alleged Wrongdoing Committed by Adamas Pharmaceuticals’ Directors and Officers From August 8, 2017 Through September 30, 2019 – Investors of Adamas Pharmaceuticals Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that on April 6, 2020, a verified shareholder derivative complaint was filed in United States District, Northern District of California, seeking to remedy alleged wrongdoing committed by Adamas Pharmaceuticals’ (“Adamas” or the “Company”) (NASDAQ: ADMS) directors and officers from August 8, 2017 through September 30, 2019 (the “Relevant Period”).
According to the shareholder derivative complaint, during the Relevant Period, the Individual Adamas Defendants breached their fiduciary duties by personally making and/or causing the Company to make to the investing public a series of materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the Individual Adamas Defendants willfully or recklessly made and/or allowed certain of the Individual Adamas Defendants to make false and misleading statements to the investing public that failed to disclose, inter alia, that: (1) health insurers and other payors were by and large providing limited or no coverage of GOCOVRI, or were imposing burdensome requirements that limited patients’ access to GOCOVRI; (2) as payors began to indicate their positions on GOCOVRI, the number of physicians prescribing GOCOVRI would decrease precipitously; (3) as a result of the foregoing, GOCOVRI’s sales, market penetration, and market share would be severely impacted in the long run; and (4) the Company failed to maintain internal controls. As a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times.
Adamas investors who currently own ADMS shares are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to discuss the Adamas Pharmaceuticals investigation or potential legal claims.
Apr 7, 2020 | Securities Class Action Archive
Class Action Lawsuit Filed Against Tufin Software Technologies Ltd. On Behalf of Investors Who Purchased, or Otherwise Acquired, TUFN Securities Pursuant And/Or Traceable to The Registration Statement and Related Prospectus Issued In Connection With Tufin Software’s April 2019 IPO – TUFN Investors Who Suffered Losses Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that on April 6, 2020, a class action lawsuit was filed in United States District Court, Central District of California, on behalf of persons who purchased or otherwise acquired the securities of Tufin Software Technologies Lts. (“Tufin Software” or the “Company”) (NYSE: TUFN) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Tufin Software’s April 2019 initial public offering (“IPO”), seeking to recover compensable damages caused by the Tufin Software Defendants’ alleged violations of the Securities Act of 1933.
According to the complaint, the Tufin Software Defendants made materially false and/or misleading statements, because they misrepresented and failed to disclose adverse facts pertaining to the Company’s business, operational and financial results, which were known to the Tufin Software Defendants or recklessly disregarded by them. Specifically, the Tufin Software Defendants made false and/or misleading statements and/or failed to disclose that: (1) Tufin Software’s customer relationships and growth metrics were overstated, particularly with respect to North America; (2) Tufin Software’s business was deteriorating, primarily in North America; (3) as a result, Tufin Software’s representations regarding its sustainable financial prospects were overly optimistic; and (4) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein.
Tufin Software investors who purchased, or otherwise acquired, TUFN securities pursuant and/or traceable to the registration statement and related prospectus issued in connection with Tufin Software’s April 2019 IPO are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the class action lawsuit or potential legal claims.
Apr 6, 2020 | Securities Class Action Archive
Federal Securities Class Action Lawsuit Filed Against Gossamer Bio, Inc. – GOSS Investors Who Suffered Losses Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making Gossamer Bio, Inc. (“Gossamer” or the “Company”) (NASDAQ: GOSS) investors aware that on April 3, 2020, a class action lawsuit was filed in United States District Court, Southern District of California, against Gossamer on behalf of all investors who purchased, or otherwise acquired, Gossamer common stock between February 8, 2019 and December 13, 2020, both dates inclusive (the “Class Period”), and/or who acquired Gossamer shares pursuant or traceable to Gossamer’s Registration Statement and Prospectus in connection with its February 8, 2019 Initial Public Offering (“IPO”), seeking to recover damages caused by the Gossamer Defendants’ alleged violations of the federal securities laws and to pursue remedies under §§11, 12(a)(2), and 15 of the Securities Act of 1933 and under §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the SEC, 17 C.F.R. § 240.10b-5.
According to the class action complaint:
Gossamer is a clinical-stage biopharmaceutical company focused on discovering, acquiring, developing, and commercializing therapeutics in the disease areas of immunology, inflammation, and oncology. The Company’s lead drug, GB001, is an oral antagonist of prostaglandin D2 receptor 2, or DP2, in development for the treatment of moderate-to-severe eosinophilic asthma and other allergic conditions. Gossamer’s GB001 product is in Phase 2 development for asthma and rhinosinusitis.
In the IPO, Gossamer and the underwriters sold 19,837,500 shares of common stock at an initial public offering price of $16.00 per share, for a total offering price of $317.4 million. Proceeds to the Company, net of underwriting discounts and commissions, were $256.68 million. Defendants in this action consist of Gossamer, Gossamer executives and directors who signed the Registration Statement, and the underwriters to the IPO (collectively, ‘Defendants’).
In violation of the 1933 Act, Defendants [allegedly] issued untrue statements of material facts and omitted to state material facts required to be stated from the Registration Statement and accompanying and incorporated offering materials that Gossamer filed with the SEC in support of the IPO. Specifically, Defendants misrepresented, inter alia, that: (1) a separate, 248-patient Phase 2 trial showed that neither GB001 nor asthma treatment montelukast had met the primary endpoint for improvement in asthma symptoms because of ‘study design and execution issues related to patient selection, including adherence’; and (2) that Novartis, who had a product that would compete against GB001 in the works, had a successful Phase 2 trial that had clinically validated DP2 antagonism. [Emphasis added.]
Additionally, the complaint alleges that
[i]n the materials accompanying the IPO and 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 compliance policies. Specifically, Defendants misrepresented and/or failed to disclose to investors: (1) the reasons for Gossamer’s GB001 trial failures; (2) the purported clinical validation of Novartis’ oral DP2 antagonist; and (3) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
In October 2019, Novartis announced that its fevipiprant product had failed to improve long function in two Phase 3 trials, as measured by FEV1, over placebo.
On December 16, 2019, Novartis announced that it was terminating the development of its DP2 antagonist fevipiprant for asthma after it failed another pair of Phase 3 clinical trials.
Analysts noted that ‘[w]hen Gossamer raised $276 million in an IPO earlier in [2019], it said Novartis’ fevipiprant phase 2 had clinically validated DP2 antagonism. That statement now looks premature, particularly when viewed in light of the failures of other DP2 drugs.’[]
On this news, the stock plummeted from a December 13, 2019 closing price of $25.37 per share to $15.96 per share, a one day drop of $9.41 or over 37%. [Emphasis in original and added.]
Gossamer investors who purchased, or otherwise acquired, GOSS securities during the Class Period and/or pursuant or traceable to Gossamer’s Registration Statement and Prospectus in connection with its February 8, 2019 IPO and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the class action lawsuit or potential legal claims.
