Apr 3, 2020 | Securities Class Action Archive
Class Action Lawsuit Filed Against Mesa Air Group, Inc. On Behalf of Individuals Who Purchased, Or Otherwise Acquired, Securities of Mesa Air Group Pursuant And/Or Traceable to The Registration Statement and Related Prospectus Issued In Connection With Mesa Air Group’s August 2018 Initial Public Offering – Mesa Air Group Investors Who Purchased, Or Otherwise Acquired, MESA Securities Pursuant to the IPO Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that a class action lawsuit was filed in United States District Court, District of Arizona, against Mesa Air Group, Inc. (“Mesa Air Group” or the “Company”) (NASDAQ: MESA) on behalf of persons who purchased, or otherwise acquired, Mesa Air Group’s securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Mesa Air Group’s August 2018 initial public offering (“IPO”) to recover compensable damages caused by the Mesa Air Group Defendants’ alleged violations of the Securities Act of 1933.
According to the complaint, the Mesa Air Group Defendants issued 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 Defendants or recklessly disregarded by them. Specifically, the Mesa Air Group Defendants, allegedly, made false and/or misleading statements and/or failed to disclose that: (1) Mesa Air Group’s operational performance was poor and below industry standards; (2) Mesa Air Group had a shortage of qualified mechanics and maintenance personnel; (3) Mesa Air Group had an inadequate number of spare aircraft and parts; (4) Mesa Air Group did not have a strong track record of reliable performance; (5) then-existing “risks” had already materialized; (6) Mesa Air Group knew of undisclosed adverse trends and uncertainties at the time of the IPO; and (7) as a result, the Mesa Air Group Defendants’ public statements were materially false and misleading at all relevant times.
Investors who purchased, or otherwise acquired, Mesa Air Group securities pursuant and/or traceable to the registration statement and related prospectus issued in connection with Mesa Air Group’s August 2018 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 3, 2020 | Securities Class Action Archive
Class Action Lawsuit Filed Against Luckin Coffee on Behalf of Luckin Coffee Investors Who Purchased, or Otherwise Acquired, LK Securities Between May 17, 2019 and April 2, 2020, Both Dates Inclusive – Luckin Coffee Investors Who Suffered Losses Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that on April 2, 2020, Luckin Coffee, Inc. (“Luckin Coffee” or the “Company”) (NASDAQ: LK) disclosed that an internal investigation found that the Company’s COO and several employees reporting to him engaged in certain misconduct, including fabricating sales transactions from the second quarter of 2019 to the fourth quarter of 2019 in an amount of approximately RMB2.2 billion.
Luckin Coffee also reported that certain costs and expenses were also substantially inflated by fabricated transactions during the same period. Luckin Coffee advised investors to no longer rely upon the Company’s previous financial statements and earning releases for the nine months ended September 30, 2019 and the two quarters starting April 1, 2019 and ended September 30, 2019, including the prior guidance on net revenues from products for the fourth quarter of 2019, and other communications relating to these consolidated financial statements.
On this news, Luckin Coffee American Depositary Shares (“ADS”) plummeted $19.80 per ADS, or approximately 75.6%, to close $6.40 per ADS on April 2, 2020, thereby damaging investors.
On April 2, 2020, a class action lawsuit was filed in United States District Court, Eastern District of New York, on behalf of persons or entities who: (1) purchased or otherwise acquired publicly traded Luckin Coffee securities from May 17, 2019 through April 2, 2020, inclusive (the “Class Period”); (2) purchased or otherwise acquired Luckin Coffee ADSs in or traceable to the Company’s public offering of ADSs conducted on or around May 17, 2019 (the “IPO”); and/or (3) purchased or otherwise acquired Luckin ADSs in or traceable to the Company’s public offering of ADSs conducted on or around January 10, 2020. The class action seeks to recover compensable damages caused by Defendants’ violations of the federal securities laws under the Securities Act of 1933 and Securities Exchange Act of 1934.
Luckin Coffee investors who purchased, or otherwise acquired, LK 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 the securities investigation or potential legal claims.
Apr 2, 2020 | Securities Class Action Archive
Luckin Coffee Reports That COO and Other Employees Engaged in Certain Misconduct, Including Fabricating Certain Sales Transactions – Kehoe Law Firm, P.C. Investigating Securities Claims on Behalf of Luckin Coffee Investors
Kehoe Law Firm, P.C. is making investors aware that on April 2, 2020, Lucking Coffee Inc. (“Luckin Coffee” or the “Company”) (NASDAQ: LK) disclosed that the Company’s Special Committee overseeing an internal investigation reported to the Company’s Board of Directors “. . . that, beginning in the second quarter of 2019, Mr. Jian Liu, the chief operating officer and a director of the Company, and several employees reporting to him, had engaged in certain misconduct, including fabricating certain transactions.” [Emphasis added.]
According to Luckin Coffee:
The information identified at this preliminary stage of the Internal Investigation indicates that the aggregate sales amount associated with the fabricated transactions from the second quarter of 2019 to the fourth quarter of 2019 amount to around RMB2.2 billion. Certain costs and expenses were also substantially inflated by fabricated transactions during this period. The above figure has not been independently verified by the Special Committee, its advisors or the Company’s independent auditor, and is subject to change as the Internal Investigation proceeds. The Company is assessing the overall financial impact of the misconduct on its financial statements. As a result, investors should no longer rely upon the Company’s previous financial statements and earning releases for the nine months ended September 30, 2019 and the two quarters starting April 1, 2019 and ended September 30, 2019, including the prior guidance on net revenues from products for the fourth quarter of 2019, and other communications relating to these consolidated financial statements. The investigation is ongoing and the Company will continue to assess its previously published financials and other potential adjustments. [Emphasis added.]
On this news, Luckin shares dropped more than 80% in pre-market trading, thereby injuring LK investors.
Luckin Coffee investors who purchased, or otherwise acquired, LK 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 the securities investigation or potential legal claims.
Apr 1, 2020 | Securities Class Action Archive
Securities Class Action Lawsuit Filed Against Golden Star Resources Ltd. – Investors of Golden Star Resources Who Purchased, Or Otherwise Acquired, GSS Securities Between February 20, 2019 and July 30, 2019, Both Dates Inclusive, Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that a class action lawsuit has been filed on behalf of purchasers of the securities of Golden Star Resources Ltd. (“Golden Star Resources” or the “Company”) (NYSE American: GSS) between February 20, 2019 and July 30, 2019, inclusive (the “Class Period”). The class action lawsuit seeks to recover damages for GSS investors under the federal securities laws.
According to the class action lawsuit, throughout the Class Period, the Golden Star Resources defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company had insufficient geological and geotechnical data in its Prestea mine; (2) the Company had experienced deficiencies in its operating practices and mining methods including inaccurate long hole drilling and blasting in its Prestea mine; (3) Golden Star Resources did not have the mining flexibility and more measured resources to ensure higher reserve grade; (4) the Company had experienced increased tonnage at much lower grade where it had to supplement some of the production with oxide material; (5) the Company had excessive dilution which drove lower mining rates at the Prestea mine; and (6) as a result, the Golden Star Resources defendants’ public statements were materially false and/or misleading at all relevant times. Investors, according to the lawsuit, suffered damages when the true details entered the market.
Investors of Golden Star Resources who purchased, or otherwise acquired, GSS 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 1, 2020 | Securities Class Action Archive
Class Action Lawsuit Filed Against VMware, Inc. and Certain VMware Officers For Alleged Securities Fraud – VMW Investors Who Purchased, Or Otherwise Acquired, Shares of VMware Between March 30, 2019 and February 27, 2020, Both Dates Inclusive, Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that a class action lawsuit has been filed against VMware, Inc. (“VMware” or the “Company”) (NYSE: VMW) and certain of its officers for alleged securities fraud on behalf of VMware investors who purchased, or otherwise acquired, VMware shares between March 30, 2019 and February 27, 2020 (the “Class Period”).
The class action complaint, filed in the United States District Court for the Northern District of California, alleges that throughout the Class Period, the VMware Defendants made materially false and/or misleading statements, and/or failed to disclose that: (1) VMware’s reporting with respect to its backlog of unfilled orders was not in compliance with all relevant accounting and disclosure requirements; (2) the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny and/or investigation; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On February 27, 2020, post-market and the same day that VMware announced its fourth quarter and full year financial results, VMware issued a press release announcing that the Enforcement Division of the SEC “requested documents and information related to VMware’s backlog and associated accounting and disclosures.”
On this news, VMware’s stock price dropped $15.11 per share, or more than 11%.
VMware investors who purchased, or otherwise acquired, VMW 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.
Mar 30, 2020 | Securities Class Action Archive
Priority Technology Holdings Files Form 8-K Regarding Non-Reliance on Previously Issued Financial Statements
Kehoe Law Firm, P.C. is making investors of Priority Technology Holdings, Inc. (“Priority Technology” or the “Company”) (NasdaqGS: PRTH) aware that on March 30, 2020, the Company filed a Form 8-K (“Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review“) which, among other things, stated that
[o]n March 26, 2020, the Audit Committee of the Board of Directors (the “Audit Committee”) of Priority Technology Holdings, Inc. (the “Company”) concluded, in consultation with management and RSM US LLP (“RSM”), the Company’s independent registered public accounting firm, that the audited consolidated financial statements as of and for the fiscal years ended December 31, 2018 (“FY18”) and 2017 (“FY17”) as contained in the Company’s 2018 Annual Report on Form 10-K, and its unaudited condensed consolidated financial statements as of and for the quarterly periods ended March 31, 2018, June 30, 2018, and September 30, 2018 included in its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2019 and 2018, June 30, 2019 and 2018, and September 30, 2019 and 2018 (collectively, the “Non-Reliance Periods”) should no longer be relied upon because of misstatements further described below. Similarly, related press releases, earnings releases and investor communications describing the Company’s financial statements for those periods should no longer be relied upon.
During the preparation of its Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Annual Report”), the Company identified two errors. First, the Company noted an understatement of losses related to certain settlement activities with the Company’s sponsor banks, merchants and ISOs. The second error noted involved an out-of-period recognition of certain chargeback revenues and related costs of services between 2018 and 2017. An investigation was conducted with the assistance of outside accounting consultants. As a result of the investigation, the Company concluded that the errors had resulted in misstatements in its consolidated financial statements for the periods identified above that were due to a failure to appropriately reconcile certain settlement accounts with the Company’s general ledger.
As reported in the Company’s FY18 Annual Report on Form 10-K, the Company will continue to report in its 2019 Annual Report a material weakness in internal control over financial reporting, as well as in subsequent periods until such material weakness is remediated. [Emphasis added.]
