Jul 30, 2019 | Securities Class Action Archive
A class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of all investors that purchased Oasmia Pharmaceutical AB (“Oasmia” or the “Company”) (NasdaqCM: OASM) securities between October 23, 2015 and July 9, 2019 (the “Class Period”).
Investors of the securities of Oasmia Pharmaceutical AB are encouraged to click Join a Securities Class Action to participate in the lawsuit or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the class action lawsuit or potential legal claims.
Investors have until September 27, 2019 to move the Court to be appointed lead plaintiff in the class action lawsuit.
According to the class action complaint, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Oasmia engaged in improper related-party transactions with Alceco International S.A. and Ardenia Investment LTD, which were controlled by Defendant Aleksov and his former father-in-law; (2) due to those transactions, millions of Swedish kronor were not accounted for in Oasmia’s books; (3) transactions concerning Oasmia’s patents were also “carried out in a doubtful way;” and (4) as a result of the aforementioned misconduct, defendants’ statements about Oasmia’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
According to the complaint, on June 28, 2019, Oasmia issued a press release that stated it was reporting suspicious transactions made between Oasmia and related partners Alceco and Ardenia to the Swedish Economic Crime Authority and appointing a special examiner to review them.
On this news, shares of Oasmia fell $0.319 per share, or approximately 24%, to close at $1.021 per share on June 28, 2019, damaging investors.
On July 9, 2019, after the close of the market, Oasmia issued another press release that stated it had ended its relationship with former executive chairmen Julian Aleksov because of the transactions mentioned in Oasmia’s June 28, 2019 press release.
On this news, shares of Oasmia fell $0.34, or more than 13%, to close at $2.26 per share on July 10, 2019, further damaging investors.
Jul 26, 2019 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating securities claims on behalf of purchasers of the securities of National General Holdings Corp.
On July 25, 2019, a class action lawsuit was filed in the Central District of California on behalf of purchasers of the common stock of National General Holdings Corp. (“National General” or the “Company”) (NasdaqGS: NGHC) between August 6, 2015 and August 9, 2017 (the “Class Period”). The class action complaint alleges that National General and certain of its officers and directors violated the Securities Exchange Act of 1934.
If you purchased, or otherwise acquired, securities of National General during the Class Period and suffered losses, please click Join a Securities Class Action to participate in the lawsuit or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the lawsuit or the securities investigation.
The class action complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding National General’s business and operations. Specifically, according to the complaint, defendants failed to disclose that National General, together with Wells Fargo, had engaged in a massive insurance scheme to bilk Wells Fargo customers out of millions of dollars. Through this scheme, National General forced thousands of customers to pay for auto insurance – commonly known as Collateral Protection Insurance (“CPI”) – that they did not need or want.
According to the complaint, National General served as Wells Fargo’s CPI vendor for all aspects of the program from July 2015, until the program was discreetly terminated in September 2016. Defendants possessed information showing that these customers already had their own insurance, but forced them to be subject to redundant, unnecessary, and overly expensive CPI policies anyway.
In addition, while defendants were concealing their participation in the fraudulent CPI scheme from investors, they were, allegedly, reporting revenues and earnings results that had been artificially inflated by the illegitimate proceeds from the scheme.
As a result of this information being withheld from the market, National General common stock traded, according to the complaint, at artificially inflated prices of more than $25 per share during the Class Period.
On July 27, 2017, The New York Times published an article that, according to the complaint, revealed for the first time the CPI forced-placed insurance scheme. The news article cited an internal report commissioned by Wells Fargo’s executives, which, reportedly, stated that more than 800,000 auto loan customers, including active military personnel, had paid for unnecessary CPI, pushing nearly 274,000 of them into delinquency and resulting in more than 20,000 unlawful vehicle repossessions. In the days that followed, attention increasingly turned to National General and its role in the scheme. National General, according to the complaint, faced numerous regulatory investigations, congressional scrutiny, and civil lawsuits that caused a decline in the price of National General shares.
Between July 26, 2017, before the story broke, and August 10, 2017, after the launch of a congressional inquiry into the scandal, the price of National General common stock fell more than 15%.
Jul 25, 2019 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating securities claims on behalf of investors of Karyopharm Therapeutics Inc. (“Karyopharm” or the “Company”) (NASDAQ: KPTI) to determine whether Karyopharm and certain of its officers or directors engaged in unlawful business practices or securities fraud.
A class action lawsuit was filed on July 23, 2019 against Karyopharm in United States District Court on behalf of a class of Karyopharm investors who purchased, or otherwise acquired, Karyopharm securities between March 2, 2017 and February 22, 2019, both dates inclusive (the “Class Period”).
If you purchased Karyopharm securities during the Class Period and suffered losses, please click Join a Securities Class Action to participate in the lawsuit or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the lawsuit or the securities investigation.
Karyopharm shareholders have until September 23, 2019 to move the Court to be appointed lead plaintiff.
According to the complaint, throughout the Class Period, Karyopharm continued to tout the commercial prospects for selinexor and consistently described selinexor (a drug intended for the treatment of various types of cancer, including principally blood cancers) as having a “predictable and manageable tolerability profile” and a “very nice safety profile,” and assured investors that it was “well tolerated” by patients. Karyopharm also claimed that selinexor had the potential to be used as a new treatment for MM (“multiple myeloma”), with limited and manageable side effects. As a result of these misrepresentations, Karyopharm shares, according to the complaint, traded at artificially inflated prices during the Class Period.
The truth, according to the class action complaint, was revealed on February 22, 2019, when, in advance of an FDA advisory committee meeting to review Karyopharm’s New Drug Application for selinexor and assess the drug’s risks and benefits, the FDA released a briefing document expressing serious concerns about the safety and efficacy of selinexor. Of significance, according to the complaint, the FDA revealed that, contrary to Karyopharm’s assurances, the previously cancelled SOPRA trial had resulted in “worse overall survival” for AML (“acute myeloid leukemia”) patients treated with selinexor, which “highlight[ed] the toxicity of this drug.” The FDA also determined that the toxicity observed with selinexor in AML patients in the SOPRA study was “similar” to that observed in MM patients in the STORM study. According to the complaint, the FDA unambiguously concluded that “[t]reatment with selinexor is associated with significant toxicity” and has “limited efficacy.”
As a result of these disclosures, Karyopharm’s stock price fell more than 43% from $8.97 per share to $5.07 per share.
Jul 22, 2019 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating potential claims against Eagle Bancorp, Inc. (“Eagle Bancorp” or the “Company”) (NASDAQ: EGBN) and certain of the Company’s officers for possible violations of the federal securities laws.
If you purchased, or otherwise acquired, Eagle Bancorp securities between March 2, 2015 and July 17, 2019 and wish to discuss Kehoe Law Firm’s securities investigation, please click Join a Securities Class Action or contact either John Kehoe, Esq., [email protected], (215) 792-6676, Ext. 801, or Michael Yarnoff, Esq., [email protected], (215) 792-6676, Ext. 804, [email protected].
A class action lawsuit was filed against Eagle Bancorp and certain of its officers in United States District Court on behalf of a class of all persons and entities, other than the Defendants, who purchased, or otherwise acquired, Eagle Bancorp securities between March 2, 2015 and July 17, 2019, both dates inclusive (the “Class Period”).
The class action seeks to recover damages caused by the Eagle Bancorp 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, against Eagle Bancorp and certain of its officials.
Eagle Bancorp shareholders have until September 23, 2019 to move the Court to be appointed lead plaintiff.
The class action complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding Eagle Bancorp’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Eagle Bancorp’s internal controls and procedures and compliance policies were inadequate; (ii) the foregoing shortcoming created a foreseeable risk of heightened regulatory scrutiny and the need for Eagle Bancorp to undertake its own internal investigations; and (iii) as a result, Eagle Bancorp’s public statements were materially false and misleading at all relevant times.
According to the complaint, on July 17, 2019, Eagle Bancorp disclosed rising legal costs stemming from ongoing internal and government investigations of “the Company’s identification, classification and disclosure of related party transactions; the retirement of certain former officers and directors; and the relationship of the Company and certain of its former officers and directors with a local public official.”
On this news, Eagle Bancorp’s stock price fell $14.30 per share, or 26.75%, to close at $39.15 per share on July 18, 2019.
More specifically, on July 17, 2019, Eagle Bancorp disclosed the following:
During the three month periods ended June 30, 2019 and June 30, 2018, [Eagle Bancorp] incurred legal, accounting and professional fees and expenses of $2.7 million and $2.2 million, respectively, which represented an increase of 26%. For the six month periods ended June 30, 2019 and June 30, 2018, [Eagle Bancorp] incurred legal, accounting and professional fees and expenses of $4.4 million and $5.2 million, respectively, which represented a decrease of 14%. During the three months ended June 30, 2018, these expenses related substantially to [Eagle Bancorp’s] engagement of independent accounting, legal and compliance consultants who conducted various investigations for [Eagle Bancorp], in addition to consulting costs to enhance [Eagle Bancorp’s] governance and risk management systems. During the three months ended June 30, 2019, such expenses related primarily to legal fees and expenditures in connection with [the Company’s] responses to investigations and related document requests and subpoenas from government agencies examining matters, including [Eagle Bancorp’s] identification, classification and disclosure of related party transactions; the retirement of certain former officers and directors; and the relationship of [Eagle Bancorp] and certain of its former officers and directors with a local public official. The Company has D&O insurance that may provide reimbursement for all or part of advancement and indemnification costs requested by current and former officers and directors, and those costs can not be estimated at this time. While [Eagle Bancorp is] unable to estimate the amount of these legal expenditures at this time, the Company expects that it will continue to incur elevated levels of legal and professional fees and expenses for at least the remainder of 2019 as it continues to cooperate with these investigations. [Emphasis added.]
Again, on this news, shares of Eagle Bancorp, the parent company of EagleBank, fell approximately 27% on July 18, 2019, eliminating more than $490 million in market capitalization.
Jul 10, 2019 | Securities Class Action Archive
Kehoe Law Firm, P.C. announces that it is conducting an investigation on behalf of MicroStrategy Incorporated (“MicroStrategy” or the “Company”) (NASDAQ: MSTR) investors concerning MicroStrategy and possible violations of federal securities laws.
If you are a MicroStrategy shareholder who has suffered a loss, please click Join a Securities Class Action or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the securities investigation.
On January 29, 2019, MicroStrategy disclosed that it expected to report a material weakness in its internal controls over financial reporting. Specifically, MicroStrategy reported that it “ . . . expects to report a material weakness in its internal control over financial reporting as of December 31, 2018 in its upcoming Annual Report on Form 10-K for the year ended December 31, 2018. The material weakness relates to general information technology controls in the areas of user access, program change-management and other matters impacting information technology systems that support MicroStrategy’s financial reporting processes.”
On this news, shares of MicroStrategy fell $10.90 per share, or approximately 8%, to close at $127.37 per share on January 30, 2019, thereby injuring investors.
On July 8, 2019, MicroStrategy announced the resignations of two senior executives, Kevin Norlin, Senior Executive Vice President, Worldwide Sales, and Stephen H. Holdridge, Senior Executive Vice President, Worldwide Services. MicroStrategy also stated that it began a search for a new Chief Financial Officer.
On this news, shares of MicroStrategy fell $14.31 per share, or greater than 10%, to close at $125.93 per share on July 8, 2019, thereby further injuring investors.
Jul 9, 2019 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of shareholders of CannTrust Holdings Inc. (“CannTrust” or the “Company”) (NYSE: CTST) resulting from allegations that CannTrust may have issued materially misleading business information to the investing public.
A shareholder class action lawsuit has been filed against CannTrust on behalf of purchasers of the Company’s securities between November 14, 2018 and July 5, 2019, inclusive (the “Class Period”).
Investors who purchased CannTrust’s securities during the Class Period have until September 9, 2019 to move the Court to seek appointment as lead plaintiff in the class action.
If you purchased CannTrust securities during the Class Period and suffered losses, please click Join a Securities Class Action to participate in the lawsuit or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the securities investigation.
The class action complaint alleges that CannTrust issued a series of false and misleading statements to investors during the Class Period, and failed to disclose: (i) that CannTrust was growing cannabis in its Pelham greenhouse while applications for regulatory approval were still pending; (ii) that CannTrust’s Pelham greenhouse did not comply with certain regulations; (iii) that, as a result, CannTrust was reasonably likely to face an inventory hold by Health Canada until the Pelham facility becomes compliant with applicable regulations; and (iv) that, as a result, the Company’s customers would face shortages and would likely seek product from CannTrust’s competitors.
On July 8, 2019, CannTrust announced its greenhouse facility in Pelham, Ontario, was audited by Health Canada and found to be “non-compliant.” Health Canada has placed a hold on approximately 5,200 kilograms of dried cannabis that was harvested in unlicensed rooms at the Pelham facility, until it deems CannTrust is compliant with regulations. CannTrust also said that it instituted a voluntary hold on approximately 7,500 kilograms of dried cannabis equivalent that also was produced in the unlicensed rooms.
Following this news, shares of CannTrust’s stock fell $1.11 per share, or more than 22% in value, to close at $3.83 per share on July 8, 2019.
Specifically, CannTrust’s Form 8-K stated that the Company
. . . received a compliance report from Health Canada notifying the Company that its greenhouse facility in Pelham, Ontario is non-compliant with certain regulations. CannTrust has accepted Health Canada’s non-compliance finding and has taken actions to ensure current and future compliance.
The non-compliant rating is based on observations by the regulator regarding the growing of cannabis in five unlicensed rooms and inaccurate information provided to the regulator by CannTrust employees. Growing in unlicensed rooms took place from October 2018 to March 2019 during which time CannTrust had pending applications for these rooms with Health Canada. These rooms were constructed in accordance with regulations and Good Production Practices, and licenses were issued for each of the five rooms in April 2019. There are 12 rooms in total at the facility.
Health Canada has placed a hold on inventory which includes approximately 5,200kg of dried cannabis that was harvested in the previously unlicensed rooms in Pelham, until it deems that the Company is compliant with regulations. In addition, CannTrust has instituted a voluntary hold of approximately 7,500kg of dried cannabis equivalent at its Vaughan manufacturing facility that was produced in the previously unlicensed rooms. [Emphasis added.]
Several days later, CannTrust announced that it “. . . implemented a voluntary hold on sale and shipment of all cannabis products as a precaution while Health Canada visits and reviews its Vaughan, Ontario manufacturing facility.”
On this news, the price of CannTrust common stock dropped more than 17% to a close of $2.58 per share on July 12, 2019.
If you purchased CannTrust securities during the Class Period and suffered losses, please click Join a Securities Class Action to participate in the lawsuit or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the securities investigation.
