Feb 20, 2018 | Securities Class Action Archive
MDXG Stock Price Drops Significantly on MiMedx’s Announcement of Delayed Financial Results – Internal Investigation Regarding Allegations of Certain Sales and Distribution Practices
Kehoe Law Firm, P.C. is investigating claims on behalf of investors of MiMedx Group, Inc. (“MiMedx”) (NASDAQ: MDXG) to determine whether MiMedx and certain of its officers and/or directors engaged in securities fraud or other unlawful business practices.
According to its corporate profile, “MiMedx is an integrated developer, processor and marketer of patent protected and proprietary regenerative biomaterial products and bioimplants processed from human amniotic membrane and other birth tissues and human skin and bone.”
On February 20, 2018, MiMedx announced that MiMedx is postponing the release of its Q4 and FY 2017 financial results. Specifically, MiMedx issued a press release which, in relevant part, stated that the Audit Committee of MiMedx’s Board of Directors ” . . . has engaged independent legal and accounting advisors to conduct an internal investigation into current and prior-period matters relating to allegations regarding certain sales and distribution practices at [MiMedx].” Further, MiMedx advised investors that “[MiMedx] executives are also reviewing, among other items, the accounting treatment of certain distributor contracts.” (Emphasis added)
On this news, MiMedx’s stock price fell sharply during intraday trading on February 20, 2018 to close at $8.75, more than 39% lower than MiMedx’s previous closing price.
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According to foxbusiness.com (“Why MiMedx Group, Inc. Is Crashing Today”):
MiMedx Group is a heavily shorted stock, so it isn’t surprising to see shares falling so hard in response to Tuesday’s news. This update also adds fuel to the long-term bear case against the company, so it is unknown how long it will take for MiMedx to regain Wall Street’s trust.
Given the uncertainty, [MDXG’s] drop does not represent an opportunity to get in. Investors who are looking for bargains in the biotech sector would probably be better served by turning their attention elsewhere. (Emphasis added)
MiMedx Group Investors and Shareholders
If you purchased, or otherwise acquired, MDXG shares 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].
Feb 19, 2018 | Securities Class Action Archive
Securities Investigation on Behalf of Purchasers of Shares of the LJM Preservation and Growth Fund Class I From February 28, 2015 Through February 7, 2018
Kehoe Law Firm, P.C. is conducting a securities investigation on behalf of purchasers of shares of the LJM Preservation and Growth Fund Class I (LJMIX) from February 28, 2015 through February 7, 2018, both dates inclusive.
The LJMIX mutual fund, which is marketed and sold as aiming “to preserve capital, particularly in down markets (including major market drawdowns), through using put option spreads as a form of mitigation risk” suffered a massive loss, steeply declining from a closing price of $9.82 on February 2, 2018 to a closing price of $1.94 on February 7, 2018, a loss of approximately 80%.
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Following the massive loss, the LJM Preservation and Growth Fund announced in an SEC filing that “[e]ffective February 7, 2018, the LJM Preservation and Growth Fund . . . is closed to all new investments, with the exception of dividend reinvestments, and the Fund’s transfer agent will not accept orders for purchases of additional shares of the Fund, either from current Fund shareholders or from new investors.”
For additional information, see the Reuters article, “U.S. fund that lost most of its value shuts doors to new investment.”
Class Action Filed on Behalf of LJMIX Investors
On February 9, 2018, a class action lawsuit was filed on behalf of LJMIX investors alleging that the defendants violated provisions of the Securities Act by issuing false and misleading statements to investors. Allegedly, the LJM defendants made false and/or misleading statements or failed to disclose that LJMIX was not focused on capital preservation and left investors exposed to an unacceptably high risk of catastrophic losses. Further, it is alleged that the LJM defendants violated the law by failing to disclose that LJMIX had not taken appropriate steps to preserve capital in down markets. The class action lawsuit is attempting to recover damages for LJMIX investors under the federal securities laws.
LJM Preservation and Growth Fund
LJM is described as a class of mutual fund pitched as bringing hedge fund-like strategies to a broader swath of investors. It used options to bet on markets remaining calm and told investors that the strategy offered an alternative to traditional stock and bond investing.
According to media reports, “The [portfolio manager] described to us several processes he had in place at the open-end fund that would limit losses,” said Gretchen Rupp, an analyst at Morningstar. “We discussed the risk management process with the PM and their risk officer at length. Clearly, the process failed.”
The fund had proved popular in recent months, attracting more than $100 million in new cash in December alone, according to Morningstar data.
LJMIX Investors
If you purchased, or otherwise acquired, shares of the LJM Preservation and Growth Fund Class I (LJMIX) from February 28, 2015 through February 7, 2018, both dates inclusive, and have questions or concerns, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].
Feb 13, 2018 | Securities Class Action Archive
Class Action Filed on Behalf of All Persons or Entities Who Purchased, or Otherwise Acquired, NQ Mobile Inc. Securities Between March 30, 2017 and February 6, 2018, Both Dates Inclusive
Kehoe Law Firm, P.C. continues its investigation on behalf of investors and shareholders who purchased NQ securities and announces that a class action has been filed in United States District Court, Eastern District of Texas, on behalf of all persons or entities who purchased, or otherwise acquired, NQ Mobile Inc. (NYSE:NQ) securities between March 30, 2017 and February 6, 2018, both dates inclusive (the “Class Period”) to try to recover compensable damages caused by the NQ Mobile Defendants’ alleged violations of federal securities laws.
NQ Mobile – “Price Target $0”; Doubts About NQ’s “Purported Values”
On February 6, 2018, a report (“NQ Mobile: Undisclosed Transfer Of Subsidiaries To Chairman Introduces Significant Risks – Price Target $0”) was published by Rota Fortunae on SeekingAlpha stating, among other things, that
Chinese corporate records lead us to believe that insiders control Tongfang Investment Fund, the firm that recently acquired NQ’s mobile gaming and video businesses.
One day after the deal with Tongfang was announced and eight months before it closed, NQ transferred its interest in FL Mobile and Showself to its Chairman, Vincent Wenyong Shi.
Our research leads us to doubt every aspect of the transaction, including the cash payments and the $270 million note receivable, which together represents over 100% of NQ’s market cap.
We find alarming similarities between NQ and Ambow Education, and we think NQ is likely to default when its convertible debt comes due in October 2018.
The US phone number listed on press releases has been disconnected; the US HQ is for lease.
[Emphasis added]
The Rota Fortunae report on SeekingAlpha also stated that
[d]espite being called a zero, NQ’s market cap has hovered around $400 million, ostensibly supported by hundreds of millions in cash and the value of its mobile gaming business. But we have serious doubts about their purported values, and we recently uncovered an undisclosed transaction with NQ’s chairman that leads us to believe the end is finally near.
[Emphasis added]
On this news, shares of NQ Mobile (NYSE:NQ) fell $1.30, or over 43%, to close at $1.68 on February 6, 2018.
NQ Mobile Shareholders and Investors
If you purchased, or otherwise acquired, NQ Mobile Inc. securities between March 30, 2017 and February 6, 2018, both dates inclusive, and have questions or concerns about the 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].
Feb 13, 2018 | Securities Class Action Archive
“Big Three” Dental Products Distributors Sued by FTC for Alleged Discount Conspiracy
Benco Dental Supply Company, Henry Schein, Inc. & Patterson Companies, Inc. Named in FTC Complaint Alleging Conspiracy Not to Provide Discounts to a Customer Segment
Henry Schein (NASDAQ:HSIC) dropped more than 12% in intraday trading on February 13, 2018, down $9.17 per share to $63.01 from a February 12, 2018 closing price of $72.18 per share.
On February 12, 2018, the FTC announced that it filed a complaint against the nation’s three largest dental supply companies, Benco Dental Supply, Henry Schein, and Patterson Companies, alleging that they violated United States antitrust laws by conspiring to refuse to provide discounts to or otherwise serve buying groups representing dental practitioners. These buying groups sought lower prices for dental supplies and equipment on behalf of solo and small-group dental practices seeking to gain discounts by aggregating and leveraging the collective purchasing power and bargaining skills of the individual practices.
According to the FTC, the alleged agreement among Benco, Henry Schein, and Patterson deprived independent dentists of the benefits of participating in buying groups that purchase dental supplies from national, full-service distributors. The FTC’s complaint details communications between executives of the two companies evidencing an agreement to refuse to provide discounts or compete for the business of buying groups, as well as attempts to monitor and ensure compliance with the agreement. The FTC’s complaint also asserts that Patterson joined the agreement.
The FTC’s complaint also alleges that on multiple occasions, Benco Dental Supply invited Burkhart Dental Supply, a regional distributor and the fourth largest full-service distributor in the United States, to refuse to provide discounts to buying groups.
Based on the agreement among the distributors, the FTC’s complaint contends that Benco, Henry Schein, and Patterson unreasonably restrained price competition for dental products in the United States; distorted prices and undermined the ability of independent dentists to obtain lower prices and discounts for dental products; deprived independent dentists of the benefits of vigorous price and service competition among full-service, national dental distributors; unreasonably reduced output of dental products to dental buying groups; and eliminated or reduced the competitive bidding process for sales to these buying groups.
As full-service dental distributors, Benco, Henry Schein and Patterson offer gloves, cements, sterilization products and a range of other consumable supplies, as well as equipment, such as dental chairs and lights. Collectively, the big three control more than 85 percent of all distributor sales of dental products and services nationwide.
The United States market for dental products is valued at approximately $10 billion, and, according to the FTC, the dental practices that would have benefited from the discounts achieved by these buying groups were small businesses comprised of solo or small groups of dentists.
Henry Schein, Inc. Shareholders and Investors
If you own, or otherwise acquired, shares of Henry Schein and have questions or concerns about the securities investigation or your potential rights or legal claims, 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]
Feb 13, 2018 | Securities Class Action Archive
“Big Three” Dental Products Distributors Sued by FTC for Alleged Discount Conspiracy
Benco Dental Supply Company, Henry Schein, Inc. & Patterson Companies, Inc. Named in FTC Complaint Alleging Conspiracy Not to Provide Discounts to a Customer Segment
Patterson Companies, Inc. (NASDAQ:PDCO) Stock Drops More than 9.5% in Pre-Market Trading on February 13, 2018 down to a share price of $29.79 from a February 12, 2018 closing price of $32.92.
On February 12, 2018, the FTC announced that it filed a complaint against the nation’s three largest dental supply companies, Benco Dental Supply, Henry Schein, and Patterson Companies, alleging that they violated United States antitrust laws by conspiring to refuse to provide discounts to or otherwise serve buying groups representing dental practitioners. These buying groups sought lower prices for dental supplies and equipment on behalf of solo and small-group dental practices seeking to gain discounts by aggregating and leveraging the collective purchasing power and bargaining skills of the individual practices.
According to the FTC, the alleged agreement among Benco, Henry Schein, and Patterson deprived independent dentists of the benefits of participating in buying groups that purchase dental supplies from national, full-service distributors. The FTC’s complaint details communications between executives of the two companies evidencing an agreement to refuse to provide discounts or compete for the business of buying groups, as well as attempts to monitor and ensure compliance with the agreement. The FTC’s complaint also asserts that Patterson joined the agreement.
The FTC’s complaint also alleges that on multiple occasions, Benco Dental Supply invited Burkhart Dental Supply, a regional distributor and the fourth largest full-service distributor in the United States, to refuse to provide discounts to buying groups.
Based on the agreement among the distributors, the FTC’s complaint contends that Benco, Henry Schein, and Patterson unreasonably restrained price competition for dental products in the United States; distorted prices and undermined the ability of independent dentists to obtain lower prices and discounts for dental products; deprived independent dentists of the benefits of vigorous price and service competition among full-service, national dental distributors; unreasonably reduced output of dental products to dental buying groups; and eliminated or reduced the competitive bidding process for sales to these buying groups.
As full-service dental distributors, Benco, Henry Schein and Patterson offer gloves, cements, sterilization products and a range of other consumable supplies, as well as equipment, such as dental chairs and lights. Collectively, the big three control more than 85 percent of all distributor sales of dental products and services nationwide.
The United States market for dental products is valued at approximately $10 billion, and, according to the FTC, the dental practices that would have benefited from the discounts achieved by these buying groups were small businesses comprised of solo or small groups of dentists.
Patterson Companies Shareholders and Investors
If you own, or otherwise acquired, shares of Patterson Companies and have questions or concerns about the securities investigation or your potential rights or legal claims, 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]
Feb 13, 2018 | Securities Class Action Archive
Securities Investigation on Behalf of BMY Shareholders and Investors
Kehoe Law Firm, P.C. is investigating claims on behalf of investors of Bristol-Myers Squibb (NYSE: BMY) to determine whether Bristol-Myers Squibb Company and certain of its officers and/or directors engaged in securities fraud or other unlawful business practices.
INVESTORS WHO BOUGHT BMY STOCK BETWEEN JANUARY 27, 2015 AND OCTOBER 9, 2016, BOTH DATES INCLUSIVE, HAVE UNTIL APRIL10, 2018 TO SEEK APPOINTMENT AS LEAD PLAINTIFF.
On August 5, 2016, Bristol-Myers announced that its CheckMate-026 trial investigating the use of Opdivo (nivolumab) as monotherapy had failed, because it did not meet its primary endpoint of progression-free survival.
On this news, Bristol-Myers’s share price fell $12.04, or 16%, to close at $63.28 on August 5, 2016. The stock price of Bristol-Myers continued to fall on the next trading day, declining another $2.98, or 4.7%, to close at $60.30 on August 8, 2016.
Subsequently, on October 9, 2016, Bristol-Myers disclosed the final primary analysis of CheckMate-026, including the finding that overall survival was only 14.4 months for Opdivo versus 13.2 months for chemotherapy.
On this news, Bristol-Myers’s share price fell $5.62, or 10.1%, to close at $49.81 on October 10, 2016.
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Class Action Lawsuit Filed Against Bristol-Myers Squibb Company
On February 9, 2018, a class action lawsuit was filed in United States District Court, Northern District of California, on behalf of persons and entities that acquired Bristol-Myers securities between a Class Period of January 27, 2015 and October 9, 2016, inclusive, against Bristol-Myers seeking to pursue remedies under the Securities Exchange Act of 1934.
According to the class action complaint:
Throughout the Class Period, the [Bristol-Myers] Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about [Bristol-Myers] business, operations, and prospects. Specifically, [Bristol-Myers] Defendants failed to disclose: (1) that Bristol-Myers’ CheckMate-026 trial was more likely to fail than [Bristol-Myers] Defendants were representing; (2) that Bristol-Myers’ CheckMate-026 trial failed more severely than [Bristol-Myers] indicated it did in [its] August 5, 2016 announcements and disclosures; and (3) that, as a result of the foregoing, [Bristol-Myers’] statements about Bristol-Myers’ business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis. (Emphasis added)
Bristol-Myers Squibb Shareholders and Investors
If you purchased, or otherwise acquired, Bristol-Myers securities between January 27, 2015 and October 9, 2016, both dates inclusive, and have questions or concerns about 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].
Investors who bought BMY during the class period and suffered damages have until April 10, 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.
