Mar 17, 2020 | Securities Class Action Archive
Tilray Stock – Tilray, Inc. Class Action Lawsuit – Kehoe Law Firm, P.C. Investigating Securities Claims on Behalf of TLRY Investors – TLRY Investors Who Have Suffered Losses Are Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating securities claims on behalf Tilray, Inc. (“Tilray” or the “Company”) (NasdaqGS: TLRY) shareholders that purchased, or otherwise acquired, TLRY common stock between January 15, 2019 and March 2, 2020, both dates inclusive (the “Class Period”).
On March 6, 2020, a class action lawsuit was filed against Tilray, Inc. and certain Tilray officers in United States District Court, Eastern District of New York, on behalf of a class consisting of all persons, other than Defendants, who purchased, or otherwise acquired, Tilray securities between January 15, 2019 and March 2, 2020, both dates inclusive, to recover damages caused by the Tilray Defendants’ alleged violations of the federal securities laws.
According to the class action complaint:
On January 15, 2019, Tilray issued a press release announcing entry into a marketing and revenue sharing agreement with Authentic Brands Group (‘ABG’), ‘an owner of a portfolio of global lifestyle and entertainment brands’ (the ‘ABG Agreement’).
Throughout the Class Period, [Tilray] Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the purported advantages of the ABG Agreement were significantly overstated; (ii) the underperformance of the ABG Agreement would foreseeably have a significant impact on the Company’s financial results; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On March 2, 2020, Tilray issued a press release announcing the Company’s financial results for the fourth quarter and full year 2019. Among other results, Tilray reported a net loss for the year of $321.2 million, or $3.20 per share, compared to $67.7 million, or $0.82 per share, for 2018. In addition, Tilray disclosed that ‘the Company recorded non-cash charges of $112.1 million related to impairment of the Authentic Brands Group LLC (‘ABG’) agreement as well as $68.6 million in inventory reserves.’
On this news, Tilray’s stock price fell $2.33 per share, or 15.18%, to close at $13.02 per share on March 3, 2020. [Emphasis added.]
Tilray Investors Who Purchased, Or Otherwise Acquired, TLRY Securities During The Class Period and Suffered Losses
Tilray investors who purchased, or otherwise acquired, the publicly-traded securities of Tilray during the Class Period between January 15, 2019 and March 2, 2020, both dates inclusive, and suffered losses greater 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 learn more about the Tilray securities investigation, the class action lawsuit or potential legal claims.
Mar 17, 2020 | Securities Class Action Archive
Cronos Group Inc. Class Action Lawsuit – CRON Investors Who Purchased, Or Otherwise Acquired, Cronos Group Seurities Between May 9, 2019 and March 2, 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 Cronos Group Group Inc. (“Cronos” or the “Company”) (NasdaqGS: CRON) and certain Cronos officers on behalf of Cronos shareholders who purchased, or otherwise acquired, Cronos securities between May 9, 2019 and March 2, 2020 (the “Class Period”).
The class action seeks to recover damages against the Cronos Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The class action complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Cronos had engaged in significant transactions for which its revenue recognition was inappropriate; (2) the foregoing would foreseeably necessitate reviews that would delay the Company’s ability to timely file its periodic reports; and (3) as a result, the public statements of Cronos were materially false and misleading at all relevant times.
According to the class action complaint:
On February 24, 2020, Cronos stated that it would delay its fourth quarter and fiscal year 2019 earnings release and conference call, previously scheduled for February 27, 2020.
On this news, Cronos’s share price fell $0.78 per share, or 10.91%, to close at $6.37 on February 24, 2020.
Then, on March 2, 2020, after the market closed, Cronos disclosed that it had requested a 15-day extension for filing a complete Annual Report on Form 10-K with the SEC for its fourth quarter and fiscal year 2019. Cronos attributed the delay to a ‘review by the Audit Committee of the Company’s Board of Directors, with the assistance of outside counsel and forensic accountants, of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions.’
On this news, Cronos’s share price fell an additional $0.70 per share, or 11.63%, to close at $5.32 per share on March 3, 2020.
[Emphasis added.]
Are You A Cronos Group Investor Who Purchased, Or Otherwise Acquired, CRON Securities During The Class Period and Suffered Losses?
Cronos investors who purchased, or otherwise acquired, the publicly-traded securities of Cronos during the Class Period between May 9, 2019 and March 2, 2020, both dates inclusive, 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 learn more about the Cronos class action lawsuit or potential legal claims.
Mar 16, 2020 | Securities Class Action Archive
Inovio Pharmaceuticals, Inc. – Class Action Lawsuit Filed Against INO On Behalf of Inovio Investors Who Purchased, Or Otherwise Acquired, Inovio Common Stock Between February 14, 2020 and March 9, 2020, Inclusive (the “Class Period”)
Inovio Investors Who Purchased INO Securities During the Class Period Between February 14, 2020 and March 9, 2020, Inclusive, And 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 it is conducting a securities investigation on behalf of investors of Inovio Pharmaceuticals, Inc. On March 12, 2020, a class action lawsuit was filed against Inovio Pharmaceuticals (“Inovio” or the “Company”) and Inovio executive J. Joseph Kim (“Kim”) in United States District Court, Eastern District of Pennsylvania, on behalf of all persons who purchased, or otherwise acquired, Inovio common stock (NASDAQ: INO) between the Class Period of February 14, 2020 and March 9, 2020, inclusive. The Plaintiff alleges that Inovio and Kim made false and misleading statements in violation of the federal securities laws.
Inovio Defendants Allegedly Capitalized on COVID-19 Fears by Falsely Claiming Development of Coronavirus Vaccine – On News of Citron Research Report, Inovio Stock Price Dropped Significantly
According to the class action complaint,
. . . Inovio purports to be a ‘biotechnology company focused on rapidly bringing to market precisely designed DNA medicines to treat, cure and/or protect people from . . . infectious diseases.’ During the Class Period, Defendants capitalized on widespread COVID-19 fears by falsely claiming that Invovio had developed a vaccine for COVID-19. First, on February 14, 2020, Inovio CEO Kim appeared on Fox Business News with Neal Cavuto and stated that Inovio had developed a COVID-19 vaccine ‘in a matter of about three hours once we had the DNA sequence from the virus’ and ‘our goal is to start phase one human testing in the U.S. early this summer.’ In response, Inovio’s stock price rose more than 10% over the next few trading days, on enormous trading volume.
Two weeks later, following a well-publicized March 2, 2020 meeting with President Trump to discuss the COVID-19 outbreak, Defendant Kim again claimed that Inovio had developed a COVID-19 vaccine, stating ‘we were able to fully construct our vaccine within three hours . . . . Our plan is to start [U.S. based COVID-19 trials] in April of this year.’ The market responded favorably to Kim’s statement and Inovio’s stock price more than quadrupled from $4.28 per share on February 28, 2020, and continued to increase in the following weeks, reaching an intra-day high of $19.36 on March 9, 2020.
However, in truth, Inovio had not developed a COVID-19 vaccine. On March 9, 2020, before trading commenced, Citron Research (‘Citron’) exposed Defendants’ misstatements, calling for an SEC investigation into the Company’s ‘ludicrous and dangerous claim that they designed a [COVID-19] vaccine in 3 hours.’ In response to the news, Inovio’s stock price plummeted from its March 9 opening price of $18.72 per share to close at $9.83. The following day, March 10, 2020, Inovio’s stock price fell from its $9.30 per share opening price to close at $5.70 per share. The two-day drop wiped out approximately $643 million in market capitalization for the Company, marking a 71% decline from its Class Period high. In a message to shareholders that same day, Inovio attempted to blunt the Citron revelations but only highlighted its own misstatements, admitting that it had not developed a COVID-19 vaccine but rather had merely ‘designed a vaccine construct‘ – i.e., a precursor for a vaccine – and that it believed it had a ‘viable approach to address the COVID-19 outbreak.’ [Emphasis in original.]
According to the class action complaint, certain statements made by the Inovio Pharmaceuticals’ Defendants
. . . were materially false and misleading and omitted to disclose material information. Specifically, Defendants falsely described their product as a fully completed vaccine when it was nothing of the sort. Defendants falsely claimed they had developed the vaccine in a matter of hours, which is a scientific impossibility. And Defendants falsely stated that they would be able to begin human trials in April 2020 when they had no reason to believe that they would have the necessary regulatory approval to do so. [Emphasis added.]
Additionally, the complaint alleges that the Inovio Defendants knew, or in reckless disregard for the truth should have known, that at the time the Company made certain statements that “Inovio had not developed a vaccine for COVID-19, that such a vaccine could not be developed in a matter of hours, and that trials were not likely to begin in April 2020.”
Inovio Investors Who Purchased, Or Otherwise Acquired, INO Securities During The Class Period and Suffered Losses
Inovio investors who purchased, or otherwise acquired, the publicly-traded securities of Inovio Pharmaceuticals during the Class Period between February 14, 2020 and March 9, 2020, inclusive, 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 learn more about the Inovio securities investigation or potential legal claims.
Mar 2, 2020 | Securities Class Action Archive
CFTC Charges Q3 Holdings, LLC, Q3 I, LP and Michael Ackerman With Fraudulently Soliciting More Than $33 Million From Customers
Kehoe Law Firm, P.C. is making investors aware that on February 11, 2020, the CFTC announced the filing of a civil enforcement action in United States District Court for the Southern District of New York against defendants Q3 Holdings, LLC and Q3 I, LP and their principal, Michael Ackerman (“Ackerman”). The complaint charges the defendants with fraudulently soliciting over $33 million to purportedly trade digital assets and misappropriating a substantial portion of that total.
The CFTC’s complaint alleges that from at least August 2017 through December 2019, defendants operated a fraudulent scheme in which they solicited funds, purportedly, to trade digital assets and then misappropriated those funds. The defendants engaged in numerous misrepresentations that included making claims of (i) earning customers .5% in daily trading profits and roughly 15% per month, (ii) using algorithms that generated winning trades 75% of the time, and (iii) utilizing security measures that made it impossible for any principal to transfer or withdraw customer funds.
In reality, the defendants sent only a small portion of the customers’ funds to digital asset trading accounts, did not earn the trading profits they claimed, and misappropriated funds. To conceal the fraud, the defendants provided customers with false accounting statements, newsletters containing false trading returns, and fictitious screenshots reflecting the amount of money under Q3’s management.
In separate actions, the U.S. Attorney’s Office for the Southern District of New York announced the arrest of Ackerman on one count of wire fraud and the Securities and Exchange Commission announced the filing of a multi-count complaint against Ackerman and Q3 alleging securities fraud and misappropriation.
Source: CFTC.gov
Feb 28, 2020 | Securities Class Action Archive
Kehoe Law Firm, P.C. Investigating Securities Claims Against Gulfport Energy Corporation on Behalf of GPOR Shareholders
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors that purchased the securities of Gulfport Energy Corporation (“Gulfport Energy” or the “Company”) (NASDAQ: GPOR).
If you purchased Gulfport Energy stock and suffered losses, you 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 learn more about the Gulfport Energy securities investigation or your potential legal claims.
In a February 27, 2020 Form 8-K filed with the SEC, Gulfport Energy disclosed that “. . . management of Gulfport Energy Corporation . . . concluded, and the Audit Committee . . . of the Company’s Board of Directors . . . concurred, that [Gulfport Energy’s] previously issued unaudited consolidated financial statements for the three and nine months ended September 30, 2019, which were included in [Gulfport Energy’s] Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, which was originally filed with the Securities and Exchange Commission . . . on November 1, 2019 . . . should no longer be relied upon due to material misstatements.” [Emphasis added.]
Gulfport Energy stated that
[i]n the course of preparing the consolidated financial statements for the year ended December 31, 2019, the Company identified a misstatement of its depreciation, depletion and amortization and impairment of oil and gas properties as of September 30, 2019 of approximately $554 million ($436 million net of the tax benefit) related to unrecorded transfers of its unevaluated oil and natural gas properties into the amortization base. This error impacted the related calculations of [Gulfport Energy’s] depreciation, depletion and amortization and impairment of oil and natural gas properties for the three and nine month periods ended September 2019. Net (loss) income and income tax (benefit) expense have also been impacted.
Additionally, Gulfport Energy stated that it
. . . has determined that a material weakness in internal control over financial reporting existed as of September 30, 2019, and therefore the Company has concluded that its disclosure controls and procedures as of September 30, 2019 were not effective. Therefore, the Company’s previous evaluation of its disclosure controls and procedures as of September 30, 2019 should no longer be relied upon.
Shares of Gulfport Energy declined sharply on this news, thereby injuring Gulfport Energy investors.
Feb 28, 2020 | Securities Class Action Archive
Kehoe Law Firm, P.C. Investigating Securities Claims on Behalf of Sterling Bancorp Investors and Shareholders
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors that purchased Sterling Bancorp, Inc. (“Sterling Bancorp” or the “Company”) (NasdaqCM: SBT) common stock: (a) pursuant and/or traceable to the Company’s initial public offering that commenced on or about November 17, 2017 (the “IPO”); and/or (b) between November 17, 2017 and December 8, 2019, inclusive (the “Class Period”).
On February 26, 2020, a class action lawsuit was filed against Sterling Bancorp, Inc. in United States District Court, Eastern District of Michigan, seeking to recover damages pursuant to §10(b) and §20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, as well as alleging claims under §§11,12(a)(2) and 15 of the Securities Act of 1933.
According to the lawsuit, during the Class Period, and in connection with the Company’s IPO, the Sterling Bancorp Defendants made untrue statements of material fact and failed to disclose material facts concerning, among other things, Sterling Bancorp’s loan underwriting, risk management and internal controls, including repeatedly touting its strict underwriting, asset quality and the Advantage Loan Program.
On December 9, 2019, Sterling Bancorp disclosed the following information:
Sterling Bank and Trust, FSB, Southfield, Michigan (the “Bank”), a wholly-owned subsidiary of Sterling Bancorp, Inc. (the “Company”) voluntarily and temporarily suspended its Advantage Loan program in connection with an ongoing internal review of the program’s documentation procedures. Management believes it is prudent to temporarily halt the program as it continues to audit documentation on past loans and puts in place additional systems and controls to ensure the Bank’s policies and procedures are followed on loans originated under the program. It is the Company’s intention to resume the Advantage Loan program as soon as management is confident its stated policies and procedures are being followed. However, it is presently difficult to estimate how long this suspension might last.
The Advantage Loan program is a material component of the Bank’s total loan originations. While it is difficult to quantify the financial impact of the program’s temporary suspension, management anticipates a reduced level of near-term loan originations, slower overall loan portfolio growth, and less loan sales. However, management does not anticipate any credit related issues from previous loans made under the program due to the substantial amount of equity required for each borrower and the resulting strong collateral package for each loan. In order to mitigate the operational and financial impact of the Advantage Loan program’s temporary suspension, the Company will continue to work on initiatives to diversify its overall loan production. Such initiatives include expanding the Bank’s commercial lending efforts, including multifamily, tenant-in-common, construction, and commercial and industrial loans. In addition, management will continue to review new residential loan products that meet the needs of its customers in its served markets.
It is too early to assess the level of success that the Company will have in replacing the lost loan production volume from the Advantage Loan program’s temporary suspension. If the Company is unable to replace the lost production in a timely matter, or if a decision is made to alter the program, the Company’s results of operations could be materially and adversely affected. [Emphasis added.]
On this news, the Company’s stock price fell $2.16, or nearly 23%, closing at $7.29 per share on December 9, 2019, thereby injuring investors.
If you purchased Sterling Bancorp common stock, pursuant and/or traceable to Sterling Bancorp’s IPO and/or during the Class Period, and suffered losses, you 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 learn more about the Sterling Bancorp securities investigation or your potential legal claims.
