Feb 6, 2018 | Securities Class Action Archive
A10 Networks January 2018 Stock Price Drops – Securities Claims Investigation on Behalf of ATEN Shareholders
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of purchasers of the securities of A10 Networks, Inc. (NYSE:ATEN), “a Secure Application Services™ company,” resulting from allegations that A10 Networks may have issued materially misleading business information to the investing public.
On January 16, 2018, A10 Networks announced it expected fourth quarter 2017 revenue to be between $55.5 million and $56 million, which was below its prior guidance of $64 million to $67 million.
On this news, shares of A10 Networks fell $0.99, or more than 13% from its previous closing price, to close at $6.32 per share on January 17, 2018.
Subsequently, on January 30, 2018, A10 Networks disclosed that its Audit Committee was investigating ATEN’s revenue recognition practices from the fourth quarter of 2015 through the fourth quarter of 2017.
Specifically, ATEN’s January 30, 2018 press release stated that A10 Networks
. . . is postponing its 2017 fourth quarter and full year earnings announcement and conference call, originally scheduled for Feb. 8, 2018.
In the fourth quarter of 2017, [A10 Networks] determined that a mid-level employee within its finance department had violated [A10 Networks’s] Insider Trading Policy and Code of Conduct. As a result, [A10 Networks], 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, [A10 Networks’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. [A10 Networks] is not able to provide a date as to when it will be completed, nor provide any assurance that [A10 Networks] will not determine that material adjustments to its past financial statements are appropriate.
At the conclusion of the Audit Committee’s investigation, [A10 Networks] will announce the scheduling of a conference call to discuss full financial results for the 2017 fourth quarter and full year.
On this news, shares of A10 Networks fell $0.86, or more than 12% from its previous closing price, to close at $6.13 per share on January 31, 2018.
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ATEN – A10 Networks Shareholders
If you purchased, or otherwise acquired, ATEN shares and have questions or concerns about the investigation or your potential legal rights or claims, 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 6, 2018 | Securities Class Action Archive
lululemon athletica inc. Announces Resignation of CEO Laurent Potdevin
LULU Stock Price Drops 3.11% in After-Market Trading on February 5, 2018
On February 5, 2018, lululemon athletica issued a press release (“lululemon athletica inc. CEO Laurent Potdevin Resigns – Three senior leaders to assume expanded roles reporting to Executive Chairman Glenn Murphy”) which stated, in pertinent part, that lululemon (NASDAQ:LULU)
. . . the healthy lifestyle inspired athletic apparel company, today announced that Laurent Potdevin has resigned as CEO and as a member of the [lululemon] Board of Directors, effective immediately. lululemon expects all employees to exemplify the highest levels of integrity and respect for one another, and Mr. Potdevin fell short of these standards of conduct. The Board of Directors has immediately begun a search process for a proven and highly-experienced global Chief Executive Officer.
“While this was a difficult and considered decision, the Board thanks Laurent for his work in strengthening the company and positioning it for the future,” said Glenn Murphy, Executive Chairman of the Board. “Culture is at the core of lululemon, and it is the responsibility of leaders to set the right tone in our organization. Protecting the organization’s culture is one of the Board’s most important duties.”
[Emphasis added]
lululemon’s Form 8-K issued in this regard stated that on February 2, 2018, Laurent Potdevin resigned as CEO and as a member of lululemon’s board of directors; the board of directors appointed Glenn Murphy to serve as lululemon’s Executive Chairman; and lululemon’s senior leaders will report to Murphy during the search for a replacement CEO. The Form 8-K also stated that
[i]n connection with Mr. Potdevin’s resignation, lululemon entered into a separation agreement and release under which Mr. Potdevin agreed to a general release of claims in favor of lululemon, an extension of his non-solicitation period to a period of 24 months, a covenant not to sue and a covenant of future cooperation. In exchange for these releases and covenants, lululemon agreed to pay Mr. Potdevin a lump sum cash payment of $3,350,000 as soon as practicable after the effective date of the separation, and a cash payment of $1,650,000 to be paid over a period of 18 months in equal monthly installments beginning 60 days after the separation date. Mr. Potdevin will not receive any continued or accelerated vesting of any outstanding equity awards. Mr. Potdevin’s entitlement to this consideration is subject to his continuing compliance with the terms of the separation agreement and release, as well as various other restrictive covenants, including covenants relating to non-competition, non-solicitation, non-disparagement and confidentiality.
See also Yahoo! Finance’s “Lululemon’s CEO resigns over issue of conduct.”
lululemon Stock Price Drops 3.11% in After-Market Trading on News of CEO’s Resignation
On the news of the CEO’s resignation, LULU’s stock price dropped 3.11% in after-market trading from a February 5, 2018 close of $77.41.
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lululemon Investors and Shareholders
Kehoe Law Firm, P.C. is investigating whether lululemon and certain of the company’s officers or directors violated securities laws, breached their fiduciary duties or engaged in other unlawful business practices. For more information, 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 5, 2018 | Securities Class Action Archive
Class Action Follows MetLife’s Delayed Earnings Announcement
As previously reported, Kehoe Law Firm, P.C. commenced an investigation on behalf of MetLife, Inc. (NYSE:MET) investors to determine whether MetLife, Inc. and certain of its officers or directors engaged in securities fraud or other unlawful business practices, as a result of MetLife’s announcement that it would postpone the earnings report and conference call related to MetLife’s results for the fourth quarter and full year ended December 31, 2017.
On the news of MetLife’s delayed earnings report, MetLife’s stock price fell significantly in after-hours trading on January 29, 2018.
MetLife Class Action Lawsuit on Behalf of Purchasers of MET Securities Between February 27, 2013 and January 29, 2018, Both Dates Inclusive
A class action lawsuit was filed on behalf of purchasers of the securities of MetLife, Inc. between February 27, 2013 and January 29, 2018, both dates inclusive (“Class Period”). The lawsuit seeks to recover damages for MetLife investors under the federal securities laws.
According to the securities lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) MetLife’s practices and procedures used to estimate its reserves set aside for annuity and pension payments were inadequate; (2) MetLife had inadequate internal controls over financial reporting; and (3) as a result, defendants’ statements about MetLife’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the truth emerged and entered the market, the class action lawsuit alleges that MetLife investors suffered damages.
MetLife’s aforementioned announcement regarding its delayed earnings release was contained in a press release which stated, in pertinent part, that
[o]n its Dec. 15, 2017, Investor Outlook Call, MetLife announced that it was undertaking a review of practices and procedures used to estimate its reserves related to certain Retirement and Income Solutions group annuitants who have been unresponsive or missing over time.
Management of the company has determined the prior release of group annuity reserves resulted from a material weakness in internal control over financial reporting. MetLife expects to increase reserves in total between $525 million and $575 million pre-tax, to adjust for reserves previously released, as well as accrued interest and other related liabilities. The amount of the reserve increase is based in substantial part on actuarial, legal, statistical, and other assumptions. If actual facts and factors differ from those the company has assumed, the reserve the company has established could be adversely or positively affected.
The total amount expected to impact fourth quarter 2017 net income is between $135 million and $165 million pre-tax, the majority of which represents a current period strengthening of reserves and will be reflected in Adjusted Earnings (formerly known as Operating Earnings)[]. [MetLife] expect[s] the full year 2017 net income impact to be between $165 million and $195 million pre-tax. In addition, the company intends to make prior period revisions to reflect the balance of these adjustments in the appropriate historical periods. The company also expects to correct historical periods for unrelated errors in those periods, as required by accounting standards. Those errors were previously recorded in the periods in which the company identified them.
. . .
In connection with MetLife’s review and enhancement of the processes and procedures relating to its Retirement and Income Solutions business in the United States, MetLife is currently reviewing its processes and procedures for identifying unresponsive and missing international group annuity annuitants and pension beneficiaries. In addition, MetLife recently initiated an ongoing global review of its processes and procedures for identifying unresponsive and missing policyholders and beneficiaries for the other insurance and annuity products it offers. MetLife is not currently aware of any material deficiencies in its identification of unresponsive or missing annuitants, policyholders or beneficiaries with respect to such products under review.
MetLife had previously informed its primary state regulator, the New York Department of Financial Services, about this matter and is responding to questions from them and other state regulators. The U.S. Securities and Exchange Commission enforcement staff has also made an inquiry regarding this matter and MetLife is responding to its questions. To date, MetLife is not aware of any intentional wrongdoing in connection with this matter.
[Emphasis added]
MetLife Investors Who Purchased, or Otherwise Acquired, MetLife Securities
MetLife investors who purchased, or otherwise acquired, publicly-traded MetLife securities between February 27, 2013 and January 29, 2018, both dates inclusive, who have questions or concerns about Kehoe Law Firm’s investigation or their potential legal rights are encouraged to contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected] for additional information.
Feb 4, 2018 | Securities Class Action Archive
Guess?, Inc. Stock Price Takes a Big Hit on News Accusing Guess Co-Founder of Inappropriate Conduct
Stock shares of Guess?, Inc. (“Guess”), the company which “design[s], market[s], distribute[s] and license[s] one of the world’s leading lifestyle collections of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities,” plummeted 17.8% on February 1, 2018, according to The Motley Fool (“Why Guess?, Inc. Stock Plummeted Today”)
. . . after the clothing retailer’s co-founder was accused of sexual misconduct. Late Wednesday, supermodel Kate Upton took to social media to express her disappointment that Guess is “empowering” company co-founder Paul Marciano as its chief creative director.
‘He shouldn’t be allowed to use his power in the industry to sexually and emotionally harass women,’ Upton elaborated, using the #MeToo hashtag that has come to signify the recent movement to highlight the prevalence of sexual assault and harassment.
See also CNBC’s article (“Guess shares crater as actress accuses co-founder of sexual harassment”) which, among other things, reported that the shares of Guess “. . . nose-dived Thursday, a day after actress Kate Upton called out co-founder Paul Marciano for allegedly using ‘his power in the industry to sexually and emotionally harass women.’”
On February 1, 2018, Guess?., Inc. (NYSE: GES) filed a Form 8-K which stated:
In early November 2017, an entertainment website notified Guess?, Inc. . . . that it was seeking to post separate allegations that Paul Marciano, [Guess’s] Executive Chairman and Chief Creative Officer, had acted inappropriately toward two women. The website posted the allegations yesterday evening.
Upon being contacted in November 2017, [Guess] immediately investigated the claims with the assistance of outside counsel, and at this time, [Guess] has determined the following: One allegation was taken from a publicly available lawsuit that was filed in 2009. Mr. Marciano denied the allegation at that time, and a contemporaneous investigation conducted in 2009 by [Guess] and outside counsel did not corroborate the plaintiff’s claims. The second allegation concerns an aspiring model who is quoted anonymously in the story claiming inappropriate conduct in March 2016. Mr. Marciano also denies this allegation. To date, the current investigation has not corroborated either allegation, and the Board of Directors has been unable to determine that either accusation has merit.
Through a social media post made yesterday, [Guess] also became aware of concerns expressed by Kate Upton, previously a model for [Guess], regarding prior conduct by Mr. Marciano. Mr. Marciano denies any misconduct toward Ms. Upton. As Ms. Upton’s concerns were just disclosed, they were not part of [Guess’s] current investigation, but [Guess] will fully investigate her claims once they are known to determine if they have any merit. As of today, no specific allegations have been made by Ms. Upton.
Guess Investor and Shareholder Alert – Guess Stock Drops More Than 17%
On the news of Guess and Marciano, the share price of Guess fell $3.26 per share, or more than 17%, from Guess’s previous closing price to close at $15.11 per share on February 1, 2018.
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On February 7, 2018, TIME magazine published an interview with model Kate Upton, in which Upton stated that Marciano “assaulted and began harassing her during her first professional modeling campaign when she was 18.” Upton’s interview provided detailed descriptions of Marciano’s alleged conduct, corroborated by at least one witness.
On February 20, 2018, Guess announced that the Board of Directors and Marciano agreed that Marciano would relinquish his day-to-day responsibilities at Guess, on an unpaid basis, pending the completion of an investigation into the allegations of improper conduct.
On this news, Guess’s share price fell $0.96, or 6.18%, to close at $14.58 on February 20, 2018.
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Guess Shareholders and Investors
Kehoe Law Firm, P.C. is investigating potential breaches of fiduciary duty by the management of Guess. Guess shareholders and investors with questions or concerns can contact John Kehoe, Esq., (215) 792-6679, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected] for additional information.
Feb 1, 2018 | Securities Class Action Archive
Super Micro Computer, Inc. (NASDAQ: SMCI) Share Price Falls
Post-market, on January 30, 2018, Super Micro Computer, “a global leader in high-performance, high-efficiency server, storage technology and green computing,” issued an announcement (“Supermicro Announces Second Quarter Fiscal 2018 Preliminary Information; Management Changes”) which stated, in pertinent part, that
[Super Micro Computer’s] Audit Committee has completed the previously disclosed investigation. Additional time is required to analyze the impact, if any, of the results of the investigation on [Super Micro’s] historical financial statements, as well as to conduct additional reviews before [Super Micro] will be able to finalize its Annual Report on Form 10-K for the fiscal year ended June 30, 2017 (the “Form 10-K”). [Super Micro] is unable at this time to provide a date as to when the Form 10-K will be filed or to determine whether the Company’s historical financial statements will be adjusted or, if so, the amount of any such adjustment(s) and what periods any such adjustments may impact. [Super Micro] intends to file its Quarterly Reports on Form 10-Q for the quarters ended September 30 and December 31, 2017 promptly after filing the Form 10-K.
Super Micro Computer’s announcement also stated that “. . . Wally Liaw, Sr. Vice President of International Sales, Phidias Chou, Sr. Vice President, Worldwide Sales and Howard Hideshima, Senior Vice President, Chief Financial Officer, have resigned. In addition, Mr. Liaw has resigned from the Company’s Board of Directors. The resignations and appointment are effective immediately.”
[Emphasis added]
Super Micro Computer Investor and Shareholder Alert
On this news, Super Micro Computer shares dropped $1.82 per share, or more than 7% from Super Micro’s previous closing price, to close at $22.83 per share on January 31, 2018.
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Super Micro Computer Shareholders and Investors
Kehoe Law Firm, P.C. is investigating whether Super Micro Computer and certain of its officers or directors engaged in securities fraud or other unlawful business practices. SMCI shareholders and investors with questions or concerns may contact John Kehoe, Esq., (215) 792-6679, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected] for additional information.
Jan 31, 2018 | Securities Class Action Archive
Bellicum’s Share Price Drops Sharply During Intraday Trading on January 31, 2018
Post-market, on January 30, 2018, Bellicum Pharmaceuticals, Inc. (NASDAQ:BLCM) announced (“Bellicum Pharmaceuticals Announces Clinical Hold on BPX-501 Clinical Trials in the United States”) that Bellicum Pharmaceuticals
. . . has received notice from the U.S. Food and Drug Administration (FDA) that U.S. studies of BPX-501 have been placed on a clinical hold following three cases of encephalopathy deemed as possibly related to BPX-501.
Bellicum is awaiting formal communications from the FDA to determine the requirements for resuming studies, and will be working closely with the FDA to address their questions. The FDA clinical hold does not affect the ongoing BP-004 registration trial in Europe.
Encephalopathy has been reported in the allogeneic stem cell transplant literature. Risk factors for encephalitis/encephalopathy after allogeneic stem cell transplants include prolonged immunodeficiency, selected medications, infections, and inflammatory processes such as graft versus host disease. Bellicum has treated more than 240 patients with BPX-501 cells on three allogeneic haploidentical stem cell transplantation protocols. These three cases are complex, with a number of potential confounding factors—including, in certain of the cases, prior failed transplants, prior history of immunodeficiency, concurrent infection, and administration of rimiducid in combination with other medications. Bellicum is working with FDA to evaluate the risk of encephalopathy in patients receiving BPX-501.
[Emphasis added]
On January 31, 2018, The Motley Fool reported (“Why Bellicum Pharmaceuticals Stock is Crashing Today”) that the
. . . clinical setback may be the beginning of the end for Bellicum. [Bellicum] has staked the bulk of its value proposition on producing a safer adoptive cell therapy than the current industry leaders. So, a serious safety issue like encephalopathy — if shown to be treatment-related — would be a big blow to Bellicum’s claim of developing a “best-in-class” adoptive cell therapy.
[Emphasis added]
On the news of the clinical hold on Bellicum’s lead product candidate BPX-501, Bellicum shares dropped significantly during intraday trading on January 31, 2018.
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Bellicum Pharmaceuticals Investors
Kehoe Law Firm, P.C. is investigating whether Bellicum and certain of its officers or directors engaged in securities fraud or other unlawful business practices. Bellicum shareholders with questions or concerns may contact John Kehoe, Esq., (215) 792-6679, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected] for additional information.
