Aug 13, 2018 | Securities Class Action Archive
On August 13, 2018, MarketWatch reported (“Hologic’s stock drops after suspension of marketing of Vitalia TempSure device”) that Hologic’s (NasdaqGS: HOLX) stock shares
. . . fell 2.9% in premarket trade Monday, after [Hologic, Inc.] said its Cynosure division will suspend marketing and distribution of its Vitalia TempSure device for heating of vaginal tissue, while it considers the Food and Drug Administration’s concerns over ‘vaginal rejuvenation’ procedures using energy-based devices. Cynosure received a letter from the FDA relating to its MonaLisa Touch laser, but although the letter didn’t mention Vitalia, has elected to consider the concerns and is asking customers to return purchased devices. The company said it has had no reports of adverse effects associated with the Vitalia device and has not been made aware of any patient harm. . . . (Emphasis added.)
Hologic’s Form 8-K in this regard stated:
On July 30, 2018, the FDA issued a public statement and sent letters to a number of companies in the medical aesthetics industry expressing concerns regarding “vaginal rejuvenation” procedures using energy-based devices. As previously disclosed, Hologic, Inc. . . . and its division, Cynosure, received such a letter relating to the MonaLisa Touch® laser (the “MLT Letter”). . . .
Cynosure recently launched the TempSure™ Vitalia handpiece and probe under an FDA 510(k) clearance and was marketing the device for heating of vaginal tissue. Although the FDA did not mention Vitalia in its recent comments or the MLT Letter, Cynosure has carefully considered the FDA’s broader concerns and elected to suspend marketing and distribution of Vitalia handpieces and single-use probes until it has confirmed they meet all regulatory requirements for devices in this category. Cynosure is also asking customers to return any Vitalia handpieces and unused probes they have purchased. Cynosure has had no reports of adverse effects associated with the use of the Vitalia handpiece and probe and has not been made aware of any patient harm associated with their use. A letter describing these decisions is being sent to customers today.
This action is limited to the Vitalia probe and handpiece and does not affect other Hologic gynecology products such as the MonaLisa Touch laser. In addition, the TempSure System remains FDA-cleared and may continue to be used with its various other handpieces, including TempSure Envi.
[Hologic] had previously forecast that revenue from TempSure Vitalia would be approximately $7 million in the fourth quarter of fiscal 2018. In addition, any returns of Vitalia handpieces, unused probes and TempSure systems are expected to be recorded as a reduction to revenue, primarily in the fourth quarter of fiscal 2018. Because the number of these returns is uncertain, Hologic is not able to accurately forecast the financial effect, including any potential impact on the full-year and fourth-quarter financial guidance provided on July 31, 2018, of these decisions at this time. . . . (Emphasis added.)
Aug 7, 2018 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating legal claims on behalf of investors of Maxar Technologies, Ltd. (NYSE: MAXR) regarding possible violations of securities laws.
If you invested in Maxar Technologies, you may have a legal claim. Investors of Maxar Technologies can contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected] or complete the form on the right to learn more about the securities investigation.
MAXR Stock Price Drops More Than 13% On The News of Inflated Assets
On August 7, 2018, Spruce Point Capital Management published a research report alleging that Maxar “has pulled one of the most aggressive accounting schemes Spruce Point has ever seen to inflate Non-IFRS earnings by 79%.”
Specifically, the report asserts that Maxar used its acquisition of DigitalGlobe “to inflate [its] intangible assets” and had “amended its post-retirement benefit plan to book one-time gains” in a manner that “was not fully disclosed across its investor communications”.
Following publication of the Spruce Point report, Maxar’s stock price fell more than 13% to close at $38.44 on August 7, 2018, thereby injuring investors.
SeekingAlpha Reports: “Maxar -6.8% as short seller Spruce Point puts on Strong Sell”
On August 7, 2018, SeekingAlpha reported the following:
Maxar Technologies . . . is 6.8% lower this morning after SA contributor Spruce Point Capital Management takes a short position, citing “100% downside risk” once investors see that earnings are overstated by about 80%.
But it sees 45-55% intermediate downside in a target of $20-$25/share. The stock’s currently at $41.39.
The company’s acquisitions of Space Systems Loral and Digital Globe are starting to fail, Spruce Point notes, with the SSL deal poorly timed and facing cash flow issues.
What’s more, Maxar is run by Howard Lance, a CEO that Spruce Point says has overseen two accounting debacles. At NCR, Lance “appears to have embellished his role as COO of the entire company, whereas his role was limited to the Retail and Financial Groups. Furthermore, Lance has obscured from his biography his leadership roles at two companies requiring financial restatement after admitting material financial control weaknesses.”
MAXR Investors and Shareholders
If you purchased, or otherwise acquired, securities of Maxar Technologies, contact Kehoe Law Firm to learn more about your potential legal rights.
Aug 6, 2018 | Securities Class Action Archive
Kehoe Law Firm, P.C. has commenced an investigation on behalf of Impinj, Inc. investors concerning possible securities laws violations.
On August 2, 2018, Impinj (NASDAQ: PI), “a leading provider and pioneer of RAIN RFID solutions for identifying, locating and authenticating everyday items,” announced that it would delay releasing its second quarter 2018 results and investor conference call, as well as the filing of PI’s Form 10-Q for the quarter ended June 30, 2018, because it is commencing a probe into a complaint filed by a former employee. Impinj also noted that the company contacted the Securities and Exchange Commission regarding the independent investigation.
According to Impinj:
The Audit Committee of Impinj’s Board of Directors has commenced an independent investigation in connection with a complaint filed by a former employee. The Audit Committee has retained independent counsel to assist it in its investigation. Impinj has contacted the Securities and Exchange Commission . . . to advise it that an independent investigation is underway, and the Audit Committee intends to provide additional information to the SEC as appropriate as the investigation proceeds. Impinj cannot predict the duration or outcome of the investigation, and will not be in a position to file Form 10-Q until the Audit Committee completes its investigation (emphasis added).
Impinj also stated that “[b]ecause the investigation is not yet completed and no conclusions with respect thereto have been reached, Impinj is currently unable to determine whether any changes will be required with respect to its reported results of operations for the three and six months ended June 30, 2018 or any other period, as well as any impact on the Company’s internal control over financial reporting.”
On this news, Impinj’s share price fell $3.02 per share, or 13.7%, to close at $18.97 per share on August 3, 2018, on unusually heavy trading volume.
Impinj, Inc. Class Action Lawsuit Filed
On August 7, 2018, a class action on behalf of persons and entities that acquired Impinj securities between May 7, 2018 and August 2, 2018, inclusive (the “Class Period”), was filed in United States District Court, Central District of California, seeking to pursue remedies under the Securities Exchange Act of 1934. According to the class action complaint:
Throughout the Class Period, [Impinj] Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about [Impinj’s] business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that [Impinj] had engaged in conduct that could lead to an employee complaint and/or Audit Committee investigation; (2) that [Impinj] lacked adequate internal and financial controls; and (3) that, as a result of the foregoing, Defendants’ statements about Impinj’s business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the [Impinj’s] securities, Plaintiff and other Class members have suffered significant losses and damages (emphasis added).
Impinj Investors & Shareholders
If you purchased or acquired shares of PI between May 7, 2018 and August 2, 2018, inclusive, and would like to speak privately with a securities attorney to learn more about the securities investigation or your legal rights as an investor, please contact John Kehoe, Esq., [email protected], [email protected], (215) 792-6676, Ext. 801, or complete the form above on the right.
Jun 27, 2018 | Securities Class Action Archive
Kehoe Law Firm, P.C. is investigating claims on behalf of investors of National Beverage Corp. (NASDAQ: FIZZ) to determine whether National Beverage and certain of its officers or directors violated federal securities laws or engaged in other unlawful business practices.
On May 4, 2017, National Beverage, the maker of LaCroix sparkling water, issued a press release stating that it “employs methods that no other company does in this area—VPO (velocity per outlet) and VPC (velocity per capita).” National Beverage asserted that it “utilize[s] two proprietary techniques to magnify these measures and this creates growth never before thought possible.” On May 5, 2017, National Beverage issued a second press release, stating that “[o]ur impressive VPO calculator . . . is flashing solid green numbers as we bring FY2017 to a close.”
On June 26, 2018, the Wall Street Journal published an article reporting that National Beverage had failed to provide information to the Securities and Exchange Commission in response to the agency’s request for more detail to clarify sales claims it had previously made in 2017.
On this news, National Beverage’s share price fell sharply during intraday trading on June 27, 2018.
National Beverage Corp. Investors
If you own shares of National Beverage and have questions or concerns about the securities investigation, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].
Jun 5, 2018 | Securities Class Action Archive
Kehoe Law Firm, P.C. is conducting a securities investigation on behalf of Aegean Marine Petroleum Network Inc. (NYSE: ANW) stockholders concerning whether Aegean Marine Petroleum Network and certain of its officers and directors may have engaged in securities fraud or other unlawful business practices.
ANW-Related Transactions without Economic Substance; $200 Million of Accounts Receivable to Be Written Off
During aftermarket hours on June 4, 2018, Aegean Marine Petroleum Network revealed that approximately $200 million of accounts receivable as of December 31, 2017 will need to be written off. According to ANW:
Based on the preliminary findings of the review, the Audit Committee believes that approximately $200 million of accounts receivable owed to [ANW] at December 31, 2017 will need to be written off. These amounts are currently due from four counterparties that were reflected in the Company’s financial statements as of December 31, 2017. There was approximately $172 million as of December 31, 2016 and $85 million as of December 31, 2015 due from these four counterparties. The transactions that gave rise to the accounts receivable (“the Transactions”) may have been, in full or in part, without economic substance and improperly accounted for in contravention of [ANW’s] normal policies and procedures. (Emphasis added)
Further, ANW reported:
The Audit Committee is continuing its review and investigation of the Transactions and other matters, with the assistance of independent counsel and forensic accounting advisors, and expects to recommend to [ANW] that it pursue claims against individuals and entities involved in the Transactions. . . . A number of individuals employed by [ANW] across multiple functions who are believed to have been involved in the Transactions have been terminated or placed on administrative leave pending the outcome of the investigation. [ANW] has reported its preliminary findings to the SEC and the Department of Justice and intends to cooperate with any resulting investigations. [ANW] does not intend to provide an update on this process until the review is completed. (Emphasis added)
On this news, in after-hours trading on June 4, 2018, ANW’s stock price dropped more than 57%, from a close of $2.85 to as low as $1.20 per share.
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Aegean Marine Petroleum Investors and Shareholders
If you purchased or otherwise acquired ANW stock 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].
May 24, 2018 | Securities Class Action Archive
Kehoe Law Firm, P.C. has commenced an investigation on behalf of investors of Rockwell Medical, Inc. (NASDAQ: RMTI) concerning RMTI’s possible violations of federal securities laws.
Rockwell Medical Terminates Its CEO
On May 23, 2018, Rockwell Medical filed a Form 8-K which, in pertinent part, stated:
In March 2018, the Board of Directors (the “Board”) of Rockwell Medical, Inc. (the “Company”) appointed Benjamin Wolin and Lisa Colleran as members of the Board. Subsequent to their appointment, the newly augmented Board conducted a thorough review of the Company’s business, including an evaluation of management. Following this review, the Board convened a meeting on May 22, 2018, at which time the Board voted to terminate the employment of Robert Chioini as President and Chief Executive Officer, effective immediately. Pursuant to the terms of Mr. Chioini’s employment agreement, and as a result of the termination of his employment, Mr. Chioini is also deemed to have resigned all employment and related job duties and responsibilities with the Company, including without limitation any and all positions on any committees or boards of the Company.
Following the May 22, 2018 Board meeting and without authorization, Mr. Chioini and Thomas Klema, Vice President, Chief Financial Officer, Treasurer and Secretary, filed a Current Report on Form 8-K making certain assertions regarding the independent directors who voted in favor of Mr. Chioini’s removal. The assertions contained in this filing are unrelated to the Board’s action to terminate Mr. Chioini from his roles.
Due to the conduct of Mr. Klema in connection with and following the termination of Mr. Chioini, including causing the filing of the unauthorized Current Report on Form 8-K, the independent directors of the Board have voted to remove Mr. Klema from his roles at the Company as well, which removal will be formally made effective by the Board at the earliest practicable date. (Emphasis added)
Rockwell Medical’s May 22, 2018 press release, which accompanied its Form 8-K filing (“Special Transition Committee Established; Permanent CEO Search Underway Company Reiterates Recently Reported Financial Results and Cash Position”), among other things, stated:
Rockwell Medical . . . announced that its Board of Directors has formed a Special Transition Committee to provide board-level oversight over the Company’s strategic direction and day-to-day operations, effective immediately. The Board of Directors also announced that the Company’s President and Chief Executive Officer, Robert Chioini, has been terminated from his positions, effective immediately. In connection with [the] announcement, Mr. Chioini has resigned as a member of the Board and will not stand for reelection at the 2018 Annual Meeting of Shareholders. (Emphasis added)
Rockwell Medical’s CEO Issues Press Release
Rockwell Medical announced that the Company’s President and Chief Executive Officer, Robert Chioini, had been terminated “effective immediately” from his positions. On May 23, 2018, however, a letter to RMTI shareholders was published on behalf of Chioini explaining that he had called an emergency Board meeting for the purpose of discussing alleged breaches of fiduciary duties and other possible violations of securities laws by various directors of Rockwell Medical, and that those directors whose conduct was the subject of the alleged breaches of fiduciary duties voted to fire Mr. Chioini.
Rockwell Medical Issues Statement Reiterating Robert Chioini’s Termination as CEO
On May 24, 2018, Rockwell Medical issued a press release again representing that Chioini had been terminated as CEO. The press release also disclosed that the Company had filed a complaint against Chioini seeking, among other things, a temporary restraining order to enjoin Chioini from holding himself out as the CEO of Rockwell Medical. Specifically, Rockwell Medical stated that “[a]s a result of Mr. Chioini’s behavior and actions following his termination, and in acting in the best interests of the Company and all its stakeholders, the Company has filed a verified complaint in the Oakland County Circuit Court in Michigan seeking declaratory relief and a temporary restraining order, enjoining Mr. Chioini from certain actions with respect to the Company, including holding himself out as Chief Executive Officer.”
Rockwell Medical Stock Trading Halted by Nasdaq
As of, May 23, 2018, trading in the Company’s shares has been halted, until Rockwell satisfies Nasdaq’s request for additional information.
Rockwell Medical Shareholders and Investors
If you purchased Rockwell Medical securities and would like to learn more about Kehoe Law Firm’s securities investigation or your rights as an investor, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].
