Mar 23, 2020 | Securities Class Action Archive
XP Inc. – Class Action Lawsuit Filed On Behalf Of Purchasers of XP Securities In Connection With XP’s December 2019 IPO – XP Shareholders Who Purchased, Or Otherwise Acquired, XP Securities In Connection With XP’s Initial Public Offering Are Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that on March 21, 2020, a class action lawsuit was filed in United States District Court, Eastern District of New York, on behalf of persons who purchased, or otherwise acquired, XP securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with XP’s December 2019 initial public offering (the “IPO” or “Offering”).
According to the complaint, in December 2019, the Defendants held the XP IPO, offering approximately 83 million Class A common shares to the investing public at $27.00 per share. By the commencement of the class action, XP’s shares traded significantly below XP’s IPO price. As a result, XP investors were damaged.
The complaint alleges that the IPO’s Registration Statement contained materially false and/or misleading statements and/or failed to disclose that: (1) XP engaged in undisclosed related party transactions; (2) XP failed to disclose its common and large system failures and connected losses; (3) XP’s aggressive Independent Financial Agents strategy was and is tenuous; (4) XP had material weaknesses; (5) XP fired its previous accounting firm due to that firm finding and disclosing material weaknesses; and (6) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
Mar 23, 2020 | Securities Class Action Archive
Hindenburg Research Alleges Undisclosed HF Foods Group Related-Party Transactions – Kehoe Law Firm, P.C. Investigating Potential Securities Claims Against HF Foods
Kehoe Law Firm, P.C. is making investors aware that on March 23, 2020, Hindenburg Research (“Hindenburg”) released a report alleging that HF Foods Group (“HF Foods” or the “Company”) (NasdaqCM: HFFG) was involved with “massive undisclosed related-party transactions.” Hindenburg Research also alleges, among other things, that HFFG’s trucking subsidiary used shareholder cash to buy “an undisclosed fleet of exotic supercars” and that HF Foods Group’s auditor “has been asleep at the wheel.”
On this news, HFFG’s stock dropped during intraday trading on March 23, 2020, thereby injuring HFFG investors.
According to Hindenburg Research (“HF Foods: 90%+ Downside on Massive Undisclosed Related-Party Transactions; Shareholder Cash Spent on Exotic Supercars & Outrageous Fundamental Valuation“):
- HF’s massive $509 million merger with food distributor B&R appears to be a blatant undisclosed related-party transaction. [HF Foods] claimed that the deal was negotiated at “arm’s length”, but [Hindenburg] found multiple documents showing that both HF and B&R were part of the same Chinese investment group for years prior to the acquisition.
- HF has transacted with at least 43 separate related-party entities in 2019 alone. Several are based out of the company’s own headquarters and appear to have no operations. [Hindenburg] visited others across the country and found red flags suggesting that these related parties are being used by insiders to extract cash from the business.
- [Hindenburg] discovered that the company’s trucking subsidiary, ostensibly set up to transport food products, appears to have also used shareholder cash to purchase an undisclosed fleet of exotic supercars including Ferraris, Porsches, and a Bentley. [Hindenburg] found photos of the Chairman’s teenage son bragging on Instagram about them being his vehicles.
- HF also directed over $2 million of shareholder cash to business entities owned by the Chairman’s teenage son, including one that bought another fleet of 7 Ferraris with vanity plates . . ..
- [Hindenburg] think[s] HF’s auditor has been asleep at the wheel. It was recently subpoenaed by the SEC for its work on iFresh (another Atlantic Acquisition SPAC mentioned above), and was lambasted in its recent Public Company Accounting Oversight Board (PCAOB) inspection report for a multitude of audit failures. [Some emphasis in original and emphasis added.]
HFFG investors who 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.
Mar 20, 2020 | Securities Class Action Archive
AMC Stock – Kehoe Law Firm, P.C. Investigating Breach of Fiduciary Duty Claims on Behalf of AMC Investors – AMC Entertainment Holdings, Inc. Shareholders Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating breach of fiduciary duty claims on behalf of current shareholders of AMC Entertainment Holdings, Inc. (“AMC”) (NYSE: AMC).
On March 20, 2020, a shareholder derivative action was filed in United States District Court, Southern District of New York, on behalf of nominal defendant AMC Entertainment Holdings, Inc. against certain of its current and former officers and directors seeking to remedy defendants’ alleged breaches of fiduciary duties, for contribution and indemnification, and to recoup certain executive compensation for the benefit of AMC.
AMC Entertainment investors who presently own AMC 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 AMC investigation or potential legal claims.
Mar 20, 2020 | Securities Class Action Archive
Six Flags Stock – Kehoe Law Firm, P.C. Investigating Breach of Fiduciary Duty Claims on Behalf of SIX Investors – Six Flags Entertainment Corporation Shareholders Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating breach of fiduciary duty claims on behalf of current shareholders of Six Flags Entertainment Corporation (“Six Flags”) (NasdaqGS: SIX).
On March 20, 2020, a verified stockholder derivative complaint was filed in United States District Court, Northern District of Texas, Fort Worth Division, on behalf of and for the benefit of Six Flags, against certain of its current and former officers and directors, seeking to remedy their alleged breaches of fiduciary duty, waste of corporate assets, unjust enrichment, and violations of the federal securities laws. Defendants’ actions have caused substantial financial and reputational harm to Six Flags.
Six Flags investors who presently own shares of Six Flags Entertainment Corporation 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 Six Flags investigation or potential legal claims.
Mar 20, 2020 | Securities Class Action Archive
Beyond Meat Stock – Kehoe Law Firm, P.C. Investigating Breach of Fiduciary Duty Claims on Behalf of BYND Investors – Beyond Meat Shareholders Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating breach of fiduciary duty claims on behalf of current shareholders of Beyond Meat, Inc. (NasdaqGS: BYND).
On March 18, 2020, a verified shareholder derivative complaint was filed in United States District Court, Central District of California, seeking to remedy the Beyond Meat Defendants’ alleged breach of fiduciary duties, unjust enrichment, corporate waste, and for contribution under Sections 10(b) and 21D of the Securities Exchange Act of 1934 that occurred between May 2, 2019 to the present and have caused substantial harm to Beyond Meat.
BYND investors who presently own shares of Beyond Meat 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 Beyond Meat investigation or potential legal claims.
Mar 20, 2020 | Securities Class Action Archive
Class Action Lawsuit – PAYS Subject of Securities Class Action Lawsuit – Investors Who Purchased, Or Otherwise Acquired, PAYS Shares Between March 12, 2019 and March 15, 2020, Both Dates Inclusive, Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making PAYS investors aware that on March 19, 2020, a class action lawsuit was filed in United States District Court, District of Nevada, on behalf of persons or entities who purchased, or otherwise acquired, publicly-traded Paysign (“Paysign” or the “Company”) (NasdaqGS: PAYS) securities between March 12, 2019 and March 15, 2020, both dates inclusive, (the “Class Period”). The class action lawsuit seeks to recover compensable damages caused by the Paysign Defendants’ alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
According to the lawsuit, throughout the Class Period, Paysign Defendants made false and/or misleading statements and/or failed to disclose that: (1) Paysign’s internal control over financial reporting was not effective; (2) Paysign’s information technology general controls were not effective; and (3) as a result, Paysign defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Paysign Announces Inability to File Annual Report For Year Ended December 31, 2019
According to the class action complaint:
On March 16, 2020, before the market opened, Paysign filed a Form 12b-25, disclosing it was unable to timely file its annual report for the fiscal year ended December 31, 2019 due to the requiring addition time to complete the Company’s financial audit. The Company also [disclosed the] identification of material weaknesses in its internal controls relating to its internal control over financial reporting and its information technology general controls. [Paysign’s] accompanying press release stated, in relevant part:
Paysign, Inc. . . . , a vertically integrated provider of innovative prepaid card programs, digital banking and processing services for corporate, consumer and government applications, announced today that it will be delayed in the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Paysign is filing a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission, which will provide Paysign with a 15 calendar-day extension beyond the March 16, 2020 deadline within which to file the annual report on Form 10-K. The filing extension will provide the necessary time to complete the financial audit.
For the full year 2019, total revenues are expected to be $34.7 million, an increase of 48% when compared to 2018. Net income attributable to Paysign on a GAAP basis is expected to be $7.5 million, an increase of 188% when compared to 2018, and Adjusted EBITDA is expected to be $10.1 Million, an increase of 106% when compared to 2018.
These are preliminary results and estimates based on current expectations and are subject to completion of the financial audit. Actual results may differ materially. Paysign expects to finalize its financial results and file its Annual Report on Form 10-K no later than the prescribed due date allowed pursuant to Rule 12b-25.
Separately, in the course of completing its assessment of internal controls over financial reporting for 2019 and the company’s initial year of compliance with Sarbanes-Oxley 404b, management identified material weaknesses related to (i) assessment of internal controls over financial reporting and (ii) information technology general controls.
[Emphasis in original.]
On this news, according to the class action complaint, Paysign’s shares fell $0.93 per share, or approximately 17%, to close at $4.59 on March 16, 2020.
Have You Purchased, Or Otherwise Acquired, Paysign Stock During The Class Period?
PAYS investors who purchased, or otherwise acquired, stock shares of Paysign during the Class Period 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.
