Mar 23, 2018 | Securities Class Action Archive
ATEN Class Action Lawsuit Seeks Compensable Damages for Purchasers of ATEN Common Stock Between February 9, 2016 and January 30, 2018, Both Dates Inclusive
Kehoe Law Firm, P.C. continues its securities investigation on behalf of individuals who purchased, or otherwise acquired, the publicly-traded securities of A10 Networks (NYSE: ATEN) between February 9, 2016 and January 30, 2018, both dates inclusive (the “Class Period”). Recently, a class action lawsuit was filed in United States District Court, Northern District of California, to recover compensable damages caused by the A10 Networks 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 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
The class action lawsuit alleges that the A10 Networks “Defendants made false and/or misleading statements and/or failed to disclose that: (1) A10 had issues with its internal controls that required an Audit Committee investigation; (2) A10’s revenues since the fourth quarter of 2015 were false due to improper revenue recognition which prompted an investigation by the Company’s Audit Committee; and (3) as a result, Defendants’ public statements were materially false and misleading at all relevant times.” (Emphasis added)
Investors who bought, or otherwise acquired, ATEN stock during the Class Period have until May 21, 2018 to file a motion with the Court to seek appointment as lead plaintiff.
Prior Announcements by A10 Networks
Preliminary Q4 2017 Results Announced
On January 16, 2018, A10 Networks announced its preliminary results for Q4 2017 (quarter ended December 31, 2017). According to the announcement:
A10 Networks expects total revenue in the fourth quarter 2017 to be between $55.5 million and $56.0 million, below its prior guidance of $64.0 million to $67.0 million. The company expects to report GAAP net income in the range of break-even to $0.01 per share. On a non-GAAP basis, the company expects to report net income between $0.05 and $0.06 per share, using approximately 74.6 million diluted shares, which is within the previous guidance for non-GAAP net income of $0.01 to $0.07 per share, using approximately 74.0 million shares on a diluted basis. GAAP and non-GAAP net income results include a benefit from performance-based variable compensation. A preliminary reconciliation between GAAP and non-GAAP information is contained in the financial statements below.
‘We are disappointed with our revenue results for the quarter, which were below our guidance primarily due to a shortfall in North America sales as we experienced lower than expected seasonal demand trends in the region. Despite this shortfall, we increased our cash and cash equivalents by $6.6 million, and continued to see strength for our security solutions,’ said Lee Chen, president and chief executive officer of A10 Networks. ‘Over the past two quarters, we have implemented a number of changes across the organization to help improve our execution and expand our presence in security to drive growth. We are making progress on these initiatives and continuing to work to align our sales and enablement engine with the growth opportunities in our market. As part of these initiatives, we have brought in Chris White to lead our global sales team, effective January 2, 2018. Chris is an accomplished sales executive with a long career in the cybersecurity industry, and his expertise in sales and channel leadership will be a solid asset to A10.’
(Emphasis added)
On this news, ATEN shares fell $0.99 per share, or more than 13% from its previous closing price, to close at $6.32 per share on January 17, 2018.
Postponement of Q4 2017 and Full Year Earnings Release and Conference Call
On January 30, 2018, A10 Networks announced that it was going to postpone the announcement and conference call related to its Q4 2017 and full year earnings. According to the announcement:
In the fourth quarter of 2017, the Company determined that a mid-level employee within its finance department had violated the Company’s Insider Trading Policy and Code of Conduct. As a result, the Company, with the assistance of outside counsel, conducted an email review and additional procedures to ensure the accuracy of its reporting of financial information for 2017. Such review and procedures did not identify matters that required material adjustments to be made. Nonetheless, the Company’s Audit Committee determined that further review and procedures relating to certain accounting and internal control matters should be undertaken. The Audit Committee’s investigation, which is being conducted with the assistance of outside counsel, is principally focused on certain revenue recognition matters from the fourth quarter of 2015 through the fourth quarter of 2017 inclusive.
The investigation is in its early stages. The Company is not able to provide a date as to when it will be completed, nor provide any assurance that the Company will not determine that material adjustments to its past financial statements are appropriate.
At the conclusion of the Audit Committee’s investigation, the Company will announce the scheduling of a conference call to discuss full financial results for the 2017 fourth quarter and full year.
(Emphasis added)
On this news, ATEN shares dropped $0.86 per share, or over 12% from its previous closing price, to close at $6.13 per share on January 31, 2018.
Delayed Filing of Annual Report on Form 10-K
On March 16, 2018, A10 Networks announced that it was going to delay the filing of its Annual Report on Form 10-K for the year ended December 31, 2017. According to the announcement:
As previously disclosed, the company’s Audit Committee, with the assistance of outside counsel, is conducting an investigation regarding certain revenue recognition and internal control matters. The investigation is focused on the time period of the fourth quarter of 2015 through the fourth quarter of 2017 inclusive. The Audit Committee has not reached any conclusions because the investigation is ongoing. Consequently, the company is not in a position to file the Form 10-K until after the completion of the Audit Committee’s investigation. While the company continues to work expeditiously to conclude this review and to file the Form 10-K as soon as practical, it does not anticipate filing its Form 10-K within the 15-day extension period provided under Rule 12b-25(b). (Emphasis added)
A10 Networks Investors and Shareholders
If you purchased, or otherwise acquired, the common stock of A10 Networks during the Class Period February 9, 2016 and January 30, 2018, both dates inclusive, 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].
Investors who bought ATEN during the class period and suffered damages have until May 21, 2018 to file a motion with the Court to seek appointment as lead plaintiff. 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.
Mar 16, 2018 | Securities Class Action Archive
Class Action Filed on Behalf of Purchasers of VelocityShares™ Daily Inverse VIX Short-Term ETNs (XIV)
Kehoe Law Firm, P.C. continues its investigation of XIV securities and reports that another class action lawsuit has been filed on behalf of purchasers of the VelocityShares™ Inverse VIX Short- Term Exchange Traded Notes during the Class Period of January 29, 2018, through February 5, 2018, inclusive (the “Class Period”).
Investors who bought XIV during the class period and suffered damages have until May 14, 2018 to file a motion with the Court to seek appointment as lead plaintiff.
The class action complaint, filed in United States District Court, Southern District of New York, against defendants Credit Suisse AG and Janus Index & Calculation Services LLC, alleges that the registration statement, prospectus and pricing supplement issued on January 29, 2018 was materially false and misleading, because it misrepresented the updating and accuracy of an important valuation metric, the Intraday Indicative Value, and failed to disclose that: (i) contrary to representations, the Intraday Indicative Value was not updated every 15 seconds based on the relevant index real time calculation of the relevant index (SPVXSPID) applying the real time prices of the relevant VIX futures contracts; and (ii) the Intraday Indicative Value was not an accurate gauge of the economic value of the Notes. The complaint also alleges that the representation of the Intraday Indicative Value was materially false and misleading, because it did not reflect the proper calculation of that metric.
On February 5, 2018, between 4:10 p.m. and 5:09 p.m., the Intraday Indicative Value, was incorrectly represented to be between $24.7 to $28.6 per Note. The Intraday Indicative Value between 4:10 p.m. and 5:09 p.m. — had it been calculated as Credit Suisse represented in the registration statement — was between $4.22 and $4.4 per Note, materially less than the inflated amount of $24.7 to $28.6 per Note. Beginning at 5:10 p.m., the Intraday Indicative Value began to update, showing a value of $4.22 per Note. XIV was inflated as a result of the inflated Intraday Indicative Value, trading at $92.80 per Note at 4:09 p.m. and falling to $37.34 per Note at 5:10 p.m. The trading price of the Notes hit a low of $10 per Note at 6:30 p.m. and closed at $15.43 at 8:00 p.m. On February 6, 2018, Credit Suisse issued a press release stating that it was accelerating the Maturity Date of the Notes to February 21, 2018, terminating the Notes.
VelocityShares™ Daily Inverse VIX Short-Term ETNs (“XIV”) Investors
If you purchased, or otherwise acquired VelocityShares™ Daily Inverse VIX Short-Term ETNs (“XIV”) 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].
Investors who bought XIV during the class period and suffered damages have until May 14, 2018 to file a motion with the Court to seek appointment as lead plaintiff. 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.
Mar 15, 2018 | Securities Class Action Archive
Class Action Filed on Behalf of Inverse VIX Short-Term ETNs
Kehoe Law Firm, P.C. continues its investigation of Credit Suisse’s XIV security and reports that a federal securities class action was filed against Credit Suisse Group AG and certain company officers on behalf of investors who purchased, or otherwise acquired, Credit Suisse VelocityShares Daily Inverse VIX Short-Term Exchange Traded Notes between January 29, 2018 and February 5, 2018 (the “Class Period”). The lawsuit, filed in United States District Court, Southern District of New York, seeks remedies under the Securities Exchange Act of 1934.
Investors who bought XIV during the class period and suffered damages have until May 14, 2018 to file a motion with the Court to seek appointment as lead plaintiff.
The lawsuit contends that the Credit Suisse defendants engaged in a deceptive course of conduct during the Class Period, which caused Plaintiff and other proposed Class members to purchase Credit Suisse’s Inverse VIX Short-Term ETNs, which were traded on the NASDAQ under ticker symbol “XIV”) at artificially inflated prices.
The defendants, allegedly, issued “materially false and/or misleading because they misrepresented and failed to disclose that (i) Credit Suisse was actively manipulating the [Inverse VIX Short-Term Exchange Traded Notes] by liquidating its holdings in various financial products to avoid a loss; (ii) Credit Suisse was manipulating the [Inverse VIX Short-Term Exchange Traded Notes] to the detriment of investors; and (iii) as a result of the foregoing, Defendants’ statements about Credit Suisse’s [Inverse VIX Short-Term Exchange Traded Notes] were false and misleading and/or lacked a reasonable basis.”
February 5, 2018 – Inverse VIX Short-Term ETN’s 89.74% Drop From Closing Value
According to the class action complaint:
On February 5, 2018, at 4:00 pm EST, the regular-hours market for the trading of the [Inverse VIX Short-Term Exchange Traded Notes] closed. The [Inverse VIX Short-Term Exchange Traded Notes’] last trading price was $99. Less than 30 minutes later, during the after-hours market, the price per [Inverse VIX Short-Term Exchange Traded Note] had dropped to $70.01. By 4:45 pm, the price had dropped to $42.81 . . . and then by 6:28 pm the price . . . had declined to a low of $10.16 per [Inverse VIX Short-Term Exchange Traded Note], a drop of approximately 89.74% from its closing value.
Credit Suisse’s Press Releases Regarding The XIV Acceleration Event
Credit Suisse, according to the complaint, issued a press release on February 6, 2018 (“Credit Suisse AG Announces Event Acceleration of its XIV ETNs”) which stated:
Credit Suisse AG (“Credit Suisse”) today announced the event acceleration of its VelocityShares™ Daily Inverse VIX Short Term ETNs (“XIV”) due to an acceleration event. The acceleration date is expected to be February 21, 2018.
Since the intraday indicative value of XIV on February 5, 2018 was equal to or less than 20% of the prior day’s closing indicative value, an acceleration event has occurred. Credit Suisse expects to deliver an irrevocable call notice with respect to the event acceleration of XIV to The Depository Trust Company by no later than February 15, 2018. The date of the delivery of the irrevocable call notice, which is expected to be February 15, 2018, will constitute the accelerated valuation date, subject to postponement due to certain events. The acceleration date for XIV is expected to be February 21, 2018, which is three business days after the accelerated valuation date. On the acceleration date, investors will receive a cash payment per ETN in an amount equal to the closing indicative value of XIV on the accelerated valuation date. The last day of trading for XIV is expected to be February 20, 2018. As of the date hereof, Credit Suisse will no longer issue new units of XIV ETNs.
Another press release issued by Credit Suisse on February 6, 2018 (“Media Response to Credit Suisse AG’s VelocityShares ™ Daily Inverse VIX Short Term ETNs due December 4, 2030”) stated that “[i]n response to certain media inquires, Credit Suisse confirms that it has experienced no trading losses from VelocityShares™ Daily Inverse VIX Short Term ETNs (“XIV”) due December 4, 2030.”
(Emphasis added)
Alleged Material Misrepresentation in XIV’s Prospectus Lead to $700 Million in Losses
The class action complaint cites to a report issued by the Securities Litigation and Consulting Group, Inc., “Material Misrepresentations in XIV Prospectus Led to $700 Million in Losses,” as additional evidence of Credit Suisse’s material misrepresentations.
According to the Executive Summary of the Securities Litigation and Consulting Group’s report:
Credit Suisse’s XIV Exchange Traded Note (ETN) linked to the inverse of short term VIX futures prices lost 97% of its value or ap-proximately [sic] $2 billion in a single day on February 5, 2018. Credit Suisse announced the following morning that it would redeem all outstanding XIV shares at the Closing Indicative Value on February 15, 2018.[]
. . .
Credit Suisse’s latest Pricing Supplement for the XIV . . . represented . . . that [Credit Suisse] would pub-lish [sic] an estimate of the current economic value of XIV shares every 15 seconds based on real time VIX futures prices but, in fact, did not. On February 5, 2018 the difference between what Credit Suisse said it would do and what is actually did was enormous because Credit Suisse effectively stopped updating its estimate of the current economic value of XIV shares at 4:10 pm when VIX futures prices were changing significantly.
From 4:10 pm to 5:09 pm on February 5, 2018 Credit Suisse was materially misrepresent-ing [sic] the true economic value of XIV. Investors were buying XIV between 4:15 pm and 5:08 pm at prices as high as in the $80s when Credit Suisse was representing to the public that the economic value of the notes was $24.6961 but had to know that the true economic value was aready [sic] between $4.22 and $4.40.
By 4:13 pm or shortly thereafter sophisticated market partici-pants [sic] would know that Credit Suisse was certain to redeem XIV for $4.22 or a little more per share. Investors paid $823.6 million to purchase 28.8 million shares after 4:15 pm at an aver-age [sic] price of $28.60. Those [aftermarket] purchases at inflated prices transferred $700 million from unsophisticated, poorly-in – formed [sic] buyers to sophisticated, well-informed sellers.
In addition to the problem with Credit Suisse’s Pricing Supple-ment [sic] prospectus we identify, we find that extraordinary trading in two critical futures contracts in the last minutes of trading before 4:15 pm on February 5, 2018 pushed up the futures’ prices and triggered the XIV liquidation. The primary ben-eficiaries [sic] of this manufactured liquidation of XIV are Credit Suisse and the traders who had previously sold XIV short.
The problems we identify herein are not unique to XIV but are found in other ETNs tied to the S&P VIX futures indices.
(Emphasis added)
VelocityShares™ Daily Inverse VIX Short-Term ETNs (“XIV”) Investors
If you purchased, or otherwise acquired VelocityShares™ Daily Inverse VIX Short-Term ETNs (“XIV”) 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].
Investors who bought XIV during the class period and suffered damages have until May 14, 2018 to file a motion with the Court to seek appointment as lead plaintiff. Please note that no class has been certified in the above action. 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.
Mar 13, 2018 | Securities Class Action Archive
Have You Traded Volatility Index Futures OR Volatility Index Options Contracts on the Chicago Board Options Exchange (“CBOE”) or Cboe Futures Exchange Between January 1, 2011 – Present?
Have You Held VIX Futures or VIX Options Contracts Through Settlement or Non-Expiring VIX Futures or VIX Options Contracts on a Day the Settling VIX Futures Contracts Settled?
If so, Kehoe Law Firm, P.C. is investigating whether the anti-manipulation provisions of the Commodity Exchange Act were violated through the intentional manipulation of the final settlement price of VIX futures and VIX options contracts linked to the Cboe Volatility Index® (VIX®), “a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.”
A recently filed class action complaint alleged that from 2011 to the present, the as of yet unknown defendants caused an artificial monthly final settlement price of expiring VIX contracts. The defendants caused an artificial settlement price, allegedly, by placing manipulative S&P 500® Index (SPX) options orders that were intended to cause artificial VIX contract settlement prices in the expiring contracts. The result of this conduct was a significant price spike either up or down from the previous day’s closing price. The manipulative scheme also, allegedly, impacted non-expiring VIX contracts and the VIX. According to the complaint, filed in United States District Court for the Northern District of Illinois, Eastern Division, the manipulative scheme’s impact dissipated shortly thereafter following a period of trading. Moreover, extreme price moves and reversions back, like those exhibited in VIX contracts, are a sign of manipulation. (For more information about the Cboe Volatility Index® (VIX®) and the relationship of the SPX and VIX Index®, please click here.)
According to CNN Money, the “lawsuit . . . claims traders manipulated the value of VIX options and futures by making bets on the S&P before VIX settlement auctions. The unidentified plaintiffs want to subpoena the Chicago Board Options Exchange, which it says can identify traders and bets that contributed to ‘hundreds of millions of dollars in losses for investors across the country.’”
If you traded VIX futures or VIX options contracts on the CBOE or Cboe Futures Exchange between January 1, 2011 through the present OR held VIX futures or VIX options contracts through settlement or non-expiring VIX futures or VIX options contracts on a day the settling VIX futures contracts settled, your rights under federal law may have been violated.
If you wish to speak to an attorney about your potential legal rights or claims, please contact Kehoe Law Firm, P.C., John Kehoe, Esq., [email protected], (215) 792-6676, Ext. 801 or e-mail [email protected].
Mar 8, 2018 | Securities Class Action Archive
Internal Control Deficiencies & Material Weakness Identified- BioScrip May Delay Form 10-K Filing
On March 8, 2018, BioScrip, Inc. (NASDAQ: BIOS), “the largest independent national provider of infusion home care management solutions,” announced its “Fourth Quarter and Full Year 2017 Financial Results.” In relevant part, BioScrip’s announcement revealed that
[a]s a result of the detailed review of [BioScrip’s] financial statements performed by the [BioScrip’s] CFO and interim-CAO during the preparation of [BioScrip’s] financial statements for the full year 2017, [BIOS] identified internal control deficiencies in connection with account reconciliations for certain asset and liability accounts. The potential financial statement errors discovered to date resulting from these internal control deficiencies do not appear to be material, but the review is ongoing. [BIOS], along with its external auditors, continues to review the possible errors and, if required, will reflect any necessary revisions and may report one or more internal control material weaknesses in its upcoming Form 10-K filing. Depending on the timing of the completion of this review, [BioScrip] may need to delay the filing of the Form 10-K.
Separately, [BioScrip] has identified and will report a material weakness related to certain spreadsheets used to calculate periodic adjustments to accounts that do not impact Adjusted EBITDA, including amortization of intangible assets, equity-linked liabilities and the amortization of discounts and deferred issuance costs of debt. The material weakness did not have any effect on the Company’s 2017 financial statements.
On this news, shares of BioScrip dropped during intraday trading on March 8, 2018 to close at $2.60, down 15.47% from the previous day’s closing price.
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BioScrip, Inc. Shareholders & Investors
Kehoe Law Firm, P.C. is investigating claims on behalf of investors of BioScrip, Inc. to determine whether BioScrip, Inc. and certain of its officers or directors engaged in securities fraud or other unlawful business practices. If you purchased, or otherwise acquired, BIOS shares and have questions or concerns about the securities investigation or your potential legal rights, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].
Mar 6, 2018 | Securities Class Action Archive
Class Action Filed on Behalf of Purchasers and Acquirers of Grupo Televisa, S.A.B. American Depositary Receipts Between April 11, 2013 and January 25, 2018, Both Dates Inclusive
Kehoe Law Firm, P.C. continues its investigation of securities claims on behalf of Grupo Televisa, S.A.B. American Depositary Receipt shareholders and reports that a class action lawsuit was filed in United States District Court, Southern District of New York, on behalf of shareholders who purchased, or otherwise acquired, Grupo Televisa ADRs (NYSE: TV) between April 11, 2013 and January 25, 2018, both dates inclusive (the “Class Period”). The class action lawsuit seeks to recover damages for Grupo Televisa ADR investors of under the federal securities laws.
Grupo Televisa’s Alleged Materially False and Misleading Statements Regarding Its Business, Operational, and Compliance Policies
According to the class action complaint, during the Class Period, Mexico City, Mexico-based Grupo Televisa
. . . made materially false and misleading statements regarding [Grupo Televisa’s] business, operational and compliance policies. Specifically, [the Grupo Televisa] Defendants made false and/or misleading statements and/or failed to disclose that: (i) Televisa executives engaged in unlawful bribery schemes involving Fédération Internationale de Football Association (“FIFA”) executives; (ii) discovery of the foregoing conduct would subject [Televisa] to heightened regulatory scrutiny; (iii) [Televisa] lacked effective internal controls over financial reporting; and (iv) as a result of the foregoing, Televisa’s ADRs traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
Grupo Televisa ADR Shareholders and Investors
If you purchased, or otherwise acquired, Grupo Televisa 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].
GRUPO TELEVISA ADR SHAREHOLDERS WHO WISH TO SERVE AS LEAD PLAINTIFF MUST MOVE THE COURT TO SEEK APPOINTMENT AS LEAD PLAINTIFF NO LATER THAN MAY 4, 2018.
NO CLASS HAS BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN AN ATTORNEY OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND NOT TAKE ANY ACTION AT THIS TIME.
