Jun 18, 2019 | Securities Class Action Archive
A class action lawsuit was recently filed in United States District Court for the Northern District of California, on behalf of persons and entities that purchased, or otherwise acquired, Box, Inc. (NYSE: BOX) (“Box” or the “Company”) securities between November 28, 2018 and June 3, 2019, inclusive (the “Class Period”). The Plaintiff is pursuing claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Investors have 60 days from June 6, 2019 to move the Court to serve as lead plaintiff in the securities class action lawsuit. If you are a Box shareholder who has suffered losses, please click Join a Securities Class Action to participate in the class action lawsuit or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected].
On February 27, 2019, Box reported fourth quarter revenue that fell below investors’ expectations, citing longer sales cycles for seven-figure deals.
On this news, the Company’s share price fell $4.64, or nearly 19%, to close at $20.24 on February 28, 2019, thereby injuring investors.
Subsequently, on June 3, 2019, Box lowered its fiscal 2020 revenue outlook to a range of $688 million to $692 million, from previous guidance of $700 million to $704 million, once again citing longer sales cycles for its larger deals.
On this news, the share price of Box fell as much as $1.30, or more than 7%, to close at $17.18 per share on June 4, 2019, thereby injuring investors further.
The class-action complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the business, operations, and prospects of Box. Specifically, the Box Defendants failed to disclose: (1) that Box was unable to close large deals within the quarter; (2) and, as a result, the Company’s revenue would be materially impacted; and (3) as a result of the foregoing, the Box Defendants’ positive statements about the business, operations, and prospects of Box were materially misleading and/or lacked a reasonable basis.
Again, investors who purchased Box stock during the Class Period and suffered damages have 60 days from June 6, 2019 to seek appointment as lead plaintiff. Box investors can click Join a Securities Class Action to participate in the lawsuit.
Please note that no class has been certified in the above action, and until a class is certified, you are not represented by counsel unless you retain an attorney of your choice. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may serve together as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Apr 22, 2019 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating potential claims on behalf of investors of Apyx Medical Corporation (“Apyx”) (NASDAQ: APYX) pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed on behalf of individuals or entities that purchased, or otherwise acquired, Apyx Medical Corporation securities between August 1, 2018 and April 1, 2019, inclusive (the “Class Period”).
Investors have 60 days from April 17, 2019 to move the Court to serve as lead plaintiff in the securities class action lawsuit. If you are an APYX shareholder who has suffered losses, please click Join a Securities Class Action to participate in the class action lawsuit or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected].
On February 21, 2019, White Diamond Research released a report alleging that a clinical study on the use of Apyx’s J-Plasma for dermal resurfacing may have missed its endpoints.
On this news, shares of Apyx fell $2.10 per share, or approximately 25%, to close at $6.40 on February 21, 2019, thereby injuring investors.
Subsequently, on April 1, 2019, Apyx announced that it “. . . withdr[ew] its application for premarket notification 510(k) regulatory clearance of J-Plasma/Renuvion for use in dermal resurfacing procedures. [Apyx] will continue to work with the U.S. Food and Drug Administration . . . relative to the development of a new 510(k) submission. At the present time, [Apyx] cannot provide a timeline for resubmission but intends to do so after further discussions with the [FDA].”
Apyx stated that although an “investigational device exemption (IDE) study evaluating the safety and efficacy of J-Plasma/Renuvion technology for the reduction of facial wrinkles and rhytides,” did not “. . . yield[] . . . serious adverse events . . . , the study did not meet the primary efficacy endpoint . . . .” Apyx also stated that “[i]n the course of [FDA] review of . . . [Apyx’s] submission, the [FDA] raised a number of questions and concerns related to superior clinical results from one investigational center as compared to the other two investigational centers in the study. The [FDA] also questioned the potential impact of protocol deviations at this investigational center including the prophylactic use of methylprednisolone in all but five subjects treated.”
On this news, shares of Apyx fell $2.49 per share, or more than 35%, to close at $4.46 on April 2, 2019, thereby further injuring investors.
The class action complaint filed in United States District Court for the Middle District of Florida alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Apyx’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the clinical study on the use of J-Plasma for dermal resurfacing had not met its primary efficacy endpoint; (2) that, as a result, the clinical study did not support Apyx’s application for regulatory clearance; (3) and, as a result, Apyx was unlikely to receive regulatory approval of J-Plasma for dermal resurfacing; and (4) as a result of the foregoing, Defendants’ positive statements about Apyx’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
Investors who purchased APYX stock during the Class Period and suffered damages have 60 days from April 17, 2019 to seek appointment as lead plaintiff. Again, Apyx investors can click Join a Securities Class Action to participate in the lawsuit. Please note that no class has been certified in the above action, and until a class is certified, you are not represented by counsel unless you retain an attorney of your choice. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may serve together as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Feb 12, 2019 | Securities Class Action Archive
Kehoe Law Firm, P.C. is Investigating Potential Claims on Behalf of Investors of Molson Coors Brewing Company
Investors of Molson Coors Brewing Company (“Molson Coors” or “the Company”) (NYSE: TAP) are advised to contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected]. The investigation concerns whether Molson Coors and certain of its officers and/or directors may have breached their fiduciary duties, issued materially misleading statements to investors or engaged in other unlawful business practices.
On February 12, 2019, Molson Coors announced that it would restate its financial statements for fiscal years 2016 and 2017 after the audit committee found errors in Molson Coors’ financial reporting. Following this disclosure, Molson Coors’ stock price fell more than 7% in pre-market trading and continued to fall sharply during intraday trading on February 12, 2019.
According to Molson Coors’ Form 8-K:
As part of preparing its 2018 financial statements, [Molson Coors] identified errors in the accounting for income taxes related to the deferred tax liabilities for its partnership in MillerCoors, LLC (“MillerCoors”). Upon the closing of the acquisition of the remaining interest in MillerCoors (the “Acquisition”) in the fourth quarter of 2016 and completion of the related deferred income tax calculations, the Company did not reconcile the outside basis deferred income tax liability for the investment in the partnership to the book-tax differences in the underlying assets and liabilities within the partnership. As a result of completing this reconciliation as part of preparing its 2018 consolidated financial statements, the Company identified a difference related to historical financial statements and concluded that the previously issued 2017 and 2016 consolidated financial statements were misstated.Accordingly, the Company is restating its consolidated financial statements as of and for the year ended December 31, 2016 to increase its deferred tax liabilities and deferred tax expense by $399.1 million, with a corresponding decrease in net income and earnings per share. The Company’s consolidated financial statements as of and for the year ended December 31, 2017 are also being restated to reflect the revaluation of such deferred liabilities due to the U.S. Tax Cuts and Job Act of 2017 and to correct further insignificant income tax errors resulting in a decrease to deferred tax liabilities and deferred tax expense of $151.4 million, resulting in corresponding increases to the Company’s net income and earnings per share. These adjustments resulted in an aggregate $247.7 million increase to the Company’s deferred tax liabilities and corresponding decrease in retained earnings and total equity as of December 31, 2017. (Emphasis added)
Further, Molson Coors stated:
In connection with the restatement, management of the Company has determined that a material weakness existed in the Company’s internal control over financial reporting as of December 31, 2018 relating to the design and maintenance of effective controls over the completeness and accuracy of the accounting for and disclosure of the income tax effects of acquired partnership interests. Specifically, [Molson Coors] did not design appropriate controls to identify and reconcile deferred income taxes associated with the accounting for acquired partnership interests. As a result, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were not effective as of December 31, 2018, and the Company’s management has concluded that its internal control over financial reporting was not effective as of December 31, 2018. (Emphasis added)
If you are a Molson Coors investor and would like more information about the investigation or have questions about your legal rights, you are encouraged to contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected].
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion on behalf of institutional and individual investors.
Dec 6, 2018 | Securities Class Action Archive
Kehoe Law Firm, P.C. is making MiMedx shareholders aware that on December 5, 2018, MiMedx Group, Inc. (OTC PINK: MDXG) “. . . announced its plans to implement a broad-based organizational realignment, cost reduction and efficiency program to better ensure the Company’s cost structure is appropriate given its revenue expectations. . . .”
MiMedx also announced that “. . . the realignment will include a reduction of the MiMedx workforce by approximately 240 full-time employees, or 24% of its total workforce, of which about half are salesforce personnel. The cost reductions also include various non-employee expenses. As a result of this realignment program, management expects [MiMedx] to realize material, annualized cost savings beginning in the first quarter of 2019.”
MiMedx reiterated that “[a]s previously announced, [MiMedx] is restating its financial statements. Due to the depth, breadth and complexity of issues identified, management has expanded the scope of work in connection with the preparation of the Company’s financial statements and is unable to estimate the expected completion date at this time.”
MiMedx also stated that
[d]ue to the changes in business practices discussed above and other factors, including the inability to provide the full context of current or past performance, [MiMedx] is not currently in a position to provide any financial performance-related information. Moreover, at this time, the Company cannot estimate its exposure, if any, to potential contingent liabilities related to pending and threatened shareholder lawsuits, pending governmental investigations or other legal proceedings.
As previously disclosed, the Compensation Committee and the Board determined that the separations of the Company’s former CEO, COO, CFO and Corporate Controller should be treated as “for cause” and that these former executive officers had engaged in, among other things, conduct detrimental to the business or reputation of the Company. The departures of these former executives have enabled [MiMedx] to progress in the preparation of its financial statements.
The Audit Committee’s independent investigation is still ongoing, and there may be other actions taken based, at least in part, on information from the investigation. [MiMedx] continues to incur significant legal and accounting-related expenses related to, among other things, the Audit Committee’s independent investigation and other legal matters, the Company’s work to prepare its restated financial statements and the implementation of improved business controls.
Separately, the Board of Directors’ search process for a permanent CEO is active and ongoing, and the Board has been meeting with candidates. However, the ongoing investigation, resulting extensive accounting analysis and pending financial restatement process make it challenging to attract qualified candidates. In addition, the financial restatement process has presented a practical issue with respect to candidates having sufficient information to evaluate the Company’s financial situation and overall business. (Emphasis added).
MiMedx Group Investors and Shareholders
If you purchased, or otherwise acquired, MDXG shares and have questions or concerns, please contact John A. Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].
Nov 30, 2018 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating potential claims on behalf of investors of Tenaris S.A. (NYSE: TS) to determine whether Tenaris and certain of its officers and/or directors engaged in securities fraud or other unlawful business practices.
On November 27, 2018, it was reported that an Argentine judge had indicted Paolo Rocca (“Rocca”), Tenaris’s chairman and majority shareholder, in connection with a wide-ranging bribery scandal involving the government of Argentina.
On November 27, 2018, Bloomberg reported:
The judge charged Rocca after the Argentine billionaire testified that one of his company’s executives paid an undisclosed amount of cash to government officials in eight monthly installments in 2008. The officials were allegedly working for then-President Cristina Fernandez de Kirchner’s administration to speed up a compensation payment from Venezuela’s Hugo Chavez for the nationalization of Sidor, a unit that had been seized by Venezuela. Rocca’s group was compensated with $1.95 billion for the unit in 2012.
The move comes as [judge Claudio] Bonadio probes hundreds of alleged bribes paid by construction companies, energy suppliers and electricity generators to members of the former government. The case, known as the “notebook scandal” after a series of notebooks belonging to a driver for the former deputy secretary for planning, who kept records of names, amounts, addresses and dates of alleged bribes paid between 2005 and 2015. Somebody named “Hector” appears in the notebooks making payments at a Rocca group building. (Emphasis added.)
Following this news, Tenaris’s American depositary receipt price fell $2.64, or 9.78%, to close at $24.36 on November 27, 2018.
Tenaris Investors and Shareholders
If you purchased or otherwise acquired Tenaris ADRs and have questions or concerns about the securities investigation or your potential legal rights, please contact John A. Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].
Sep 11, 2018 | Securities Class Action Archive
Kehoe Law Firm, P.C. Announces a Securities Fraud Investigation On Behalf of Shareholders and Investors of USA Technologies, Inc. (NasdaqGM: USAT) (“USA Technologies”).
On September 11, 2018, USA Technologies disclosed that it will not file its Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (the “Annual Report”) by the September 13, 2018 deadline. In particular, the company revealed that
. . . [t]he Audit Committee of the Company’s Board of Directors, with the assistance of independent legal and forensic accounting advisors, is in the process of conducting an internal investigation of current and prior period matters relating to certain of [USA Technologies’] contractual arrangements, including the accounting treatment, financial reporting and internal controls related to such arrangements.The Audit Committee is working closely with its advisors to complete its investigation in as timely a manner as possible. [USA Technologies] will not be in a position to file its Form 10-K until the Audit Committee completes its investigation and [USA Technologies] and its independent auditor assess the results of that investigation.
Following this news, USA Technologies stock closed down more than 39% on September 11, 2018.
Class Action Lawsuit Filed on Behalf of USAT Investors
On September 11, 2018, a class action lawsuit was filed in United States District Court, District of New Jersey, on behalf a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased publicly-traded USA Technologies securities from November 9, 2017 through September 11, 2018, both dates inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of federal securities laws and pursue remedies under the Securities Exchange Act of 1934.
According to the class action complaint, the USA Technologies’ Defendants made materially false and/or misleading statements and/or failed to disclose the adverse facts pertaining to [USAT’s] business and operations which were known to Defendants or recklessly disregarded by them. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) USA Technologies’ treatment of contractual arrangements in its financial statements would result in an internal investigation and delay the filing of its annual report for fiscal year 2018; (2) consequently, USA Technologies’ internal controls over financial reporting were weak and deficient; (3) as a result, Defendants’ statements about USA Technologies’ business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
USA Technologies, Inc.
According to the Company:
USA Technologies, Inc. is a premier payment technology service provider of integrated cashless and mobile transactions in the self-service retail market. The company also provides a broad line of cashless acceptance technologies including its NFC-ready ePort® G-series, ePort Mobile® for customers on the go, ePort® Interactive, and QuickConnect, an API Web service for developers. Through its recent acquisition of Cantaloupe Systems, Inc. (“Cantaloupe”), the company also offers logistics, dynamic route scheduling, automated pre-kitting, responsive merchandising, inventory management, warehouse and accounting management solutions. Cantaloupe is a premier provider of cloud and mobile solutions for vending, micro markets, and office coffee services.
Shareholders and Investors of USA Technologies
If you purchased USAT securities from November 9, 2017 through September 11, 2018, both dates inclusive (“Class Period”), and would like to learn more about the securities investigation or your potential legal claims, please contact John Kehoe, Esq., [email protected], (215) 792-6676, Ext. 801, or e-mail [email protected].
