Feb 4, 2021 | Securities Class Action Archive
SEC Charges GPB Capital Holdings LLC; Ascendant Capital LLC; Ascendant Alternative Strategies, LLC & Others With Running A Ponzi-Like Scheme That Raised Over $1.7 Billion
Kehoe Law Firm, P.C. is making investors aware that on February 4, 2021, the SEC announced that it charged three individuals and their affiliated entities with running a Ponzi-like scheme that raised over $1.7 billion from securities issued by a New York-based asset management firm and registered investment adviser, GPB Capital Holdings.
The SEC’s complaint filed against GPB CAPITAL HOLDINGS (“GPB Capital), LLC; ASCENDANT CAPITAL, LLC (“Ascendant Capital”); ASCENDANT ALTERNATIVE STRATEGIES, LLC; DAVID GENTILE (“Gentile”); JEFFRY SCHNEIDER (“Schneider”); and JEFFREY LASH (“Lash”) alleges that Gentile, the owner and CEO of GPB Capital, and Schneider, the owner of GPB Capital’s placement agent, Ascendant Capital, lied to investors about the source of money used to make an 8% annualized distribution payment to investors.
According to the complaint, the defendants, along with Ascendant Alternative Strategies, which marketed GPB Capital’s investments, told investors that the distribution payments were paid exclusively with monies generated by GPB Capital’s portfolio companies. Allegedly, GPB Capital actually used investor money to pay portions of the annualized 8% distribution payments. GPB Capital and Gentile with assistance from Lash, a former managing partner at GPB Capital, also, allegedly, manipulated the financial statements of certain limited partnership funds managed by GPB Capital to perpetuate the deception by giving the false appearance that the funds’ income was closer to generating sufficient income to cover the distribution payments than it actually was.
The SEC’s complaint alleges that GPB Capital and Ascendant Capital made misrepresentations to investors about millions of dollars in fees and other compensation received by Gentile and Schneider. Allegedly, the fraudulent scheme continued for more than four years in part because GPB Capital kept investors in the dark about the limited partnership funds’ true financial condition, failing to deliver audited financial statements and register two of its funds with the SEC.
GPB Capital also, allegedly, violated the whistleblower provisions of the securities laws by including language in termination and separation agreements that impeded individuals from coming forward to the SEC, and by retaliating against a known whistleblower.
According to the SEC’s complaint:
GPB Capital describes itself as a New York-based alternative asset management firm that acts as a general partner and fund manager for limited partnership funds. The limited partnership funds invest in various businesses with a focus primarily on automotive retail, waste management, and healthcare (collectively, the “Portfolio Companies”). Since its founding in 2013, GPB Capital has raised in excess of $1.7 billion for at least five limited partnership funds from approximately 17,000 retail investors nationwide, approximately 4,000 of whom are seniors. Nearly all of the $1.7 billion raised is still at risk: in 2018 GPB Capital suspended all redemptions and distributions and, according to a recent regulatory filing, GPB Capital’s assets are far below its obligations to the investors. [Emphasis added.]
Source: SEC.gov
Feb 3, 2021 | Securities Class Action Archive
Investigation of EQT Corporation Officers And Directors For Potential Breach of Fiduciary Duty Claims – EQT Investors Who Have Held Their Stock Continuously Since January 2018 Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating whether certain officers and/or directors of EQT Corporation (“EQT” or the “Company”) (NYSE: EQT) breached their fiduciary duties to EQT and the Company’s shareholders.
The investigation concerns, among other things, whether certain officers and/or directors of EQT made false and/or misleading statements about its acquisition of Rice, a rival gas producer.
If you have held EQT stock continuously since January 2018 and wish to discuss Kehoe Law Firm’s investigation or have questions about your potential legal rights, please contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], [email protected], to learn more about the investigation or potential legal claims.
Feb 3, 2021 | Securities Class Action Archive
Investigation Of Brookdale Senior Living Directors And Officers For Potential Breach Of Fiduciary Duty Claims – Brookdale Investors Who Have Held Their Stock Continuously Since At Least 2019 Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating whether certain officers and/or directors of Brookdale Senior Living Inc. (“Brookdale” or the “Company”) (NYSE: BKD) breached their fiduciary duties to Brookdale and the Company’s shareholders.
The investigation concerns whether certain officers and/or directors of Brookdale, among other things, failed to disclose and/or made misleading statements regarding Brookdale’s business, operational, and legal profiles, including whether the Company intentionally underestimated data inputs to meet financial benchmarks.
If you have held Brookdale stock continuously since at least 2019 and wish to discuss Kehoe Law Firm’s investigation or have questions about your potential legal rights, please contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], [email protected], to learn more about the investigation or potential legal claims.
Feb 2, 2021 | Securities Class Action Archive
iRhythm Investors Who Have Suffered Losses Greater Than $100,000 Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of iRhythm Technologies, Inc. (“iRhythm” or the “Company”) (NASDAQ: IRTC) to determine whether the Company engaged in securities fraud or other unlawful business practices.
INVESTORS WHO PURCHASED, OR OTHERWISE ACQUIRED, iRHYTHM SECURITIES BETWEEN AUGUST 4, 2020 AND JANUARY 28, 2021, BOTH DATES INCLUSIVE (THE “CLASS PERIOD”), AND SUFFERED LOSSES GREATER THAN $100,000 ARE ENCOURAGED TO COMPLETE KEHOE LAW FIRM’S SECURITIES CLASS ACTION QUESTIONNAIRE OR CONTACT KEVIN CAULEY, DIRECTOR, BUSINESS DEVELOPMENT, (215) 792-6676, EXT. 802, [email protected], [email protected], [email protected], TO DISCUSS THE SECURITIES INVESTIGATION OR POTENTIAL LEGAL CLAIMS.
On February 1, 2021, a class action lawsuit was filed against iRhythm in United States District Court, Northern District of California.
According to the class action complaint, throughout the Class Period, the iRhythm Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts to investors. The iRhythm Defendants, allegedly, misrepresented and/or failed to disclose to investors that (1) iRhythm’s business would suffer as a result of the U.S. Centers for Medicare and Medicaid Services’ (“CMS”) rulemaking; (2) reimbursement rates would in fact plummet; (3) a lack of national pricing in the CMS rule and fee schedule would cause uncertainty and weakness in the Company’s business; and (4) as a result of the foregoing, the iRhythm Defendants’ public statements were materially false and misleading at all relevant times.
Jan 27, 2021 | Securities Class Action Archive
Bit Digital Investors Who Have Suffered Losses Greater Than $100,000 Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of Bit Digital, Inc. (“Bit Digital” or the “Company”) (NASDAQ: BTBT) to determine whether the Company engaged in securities fraud or other unlawful business practices.
BIT DIGITAL INVESTORS WHO PURCHASED, OR OTHERWISE ACQUIRED, THE COMPANY’S SECURITIES BETWEEN DECEMBER 21, 2020 AND JANUARY 8, 2021, BOTH DATES INCLUSIVE (THE “CLASS PERIOD”), AND SUFFERED LOSSES GREATER THAN $100,000 ARE ENCOURAGED TO COMPLETE KEHOE LAW FIRM’S SECURITIES CLASS ACTION QUESTIONNAIRE OR CONTACT MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, [email protected], [email protected], [email protected], TO DISCUSS THE SECURITIES INVESTIGATION OR POTENTIAL LEGAL CLAIMS.
On January 20, 2021, a class action lawsuit was filed against Bit Digital in United States District Court, Southern District of New York.
According to class action complaint, throughout the Class Period, the Bit Digital Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Allegedly, the Bit Digital Defendants failed to disclose to investors: (1) that Bit Digital overstated the extent of its bitcoin mining operation; and (2) as a result of the foregoing, the Bit Digital Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Dec 19, 2020 | Securities Class Action Archive
Investors Of GoodRx Holdings With Significant Losses Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of GoodRx Holdings, Inc. (“GoodRx” or the “Company”) (NASDAQ: GDRX) to determine whether the Company engaged in securities fraud or other unlawful business practices.
INVESTORS WHO PURCHASED, OR OTHERWISE ACQUIRED, THE SECURITIES OF GOODRX BETWEEN SEPTEMBER 23, 2020 AND NOVEMBER 16, 2020, BOTH DATES INCLUSIVE (THE “CLASS PERIOD”), AND SUFFERED LOSSES GREATER THAN $50,000 ARE ENCOURAGED TO COMPLETE KEHOE LAW FIRM’S SECURITIES CLASS ACTION QUESTIONNAIRE OR CONTACT MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, [email protected], [email protected], [email protected], TO DISCUSS THE SECURITIES INVESTIGATION OR POTENTIAL LEGAL CLAIMS.
A class action lawsuit has been filed seeking to recover damages on behalf of GoodRx investors who purchased, or otherwise acquired, GoodRx securities during the Class Period and suffered losses.
According to the class action complaint, at the time of GoodRx’s September 2020 Initial Public Offering (“IPO”), unbeknownst to investors, Amazon.com, Inc. (“Amazon”) was developing and would soon introduce its own online and mobile prescription medication ordering and fulfillment service that would directly compete with GoodRx.
The complaint alleges that the GoodRx Defendants timed the IPO so that it was priced before Amazon announced its online pharmaceutical business to facilitate the IPO and create artificial demand for the common shares sold therein, as well to maximize the amount of money the Company and the selling stockholders could raise in the IPO. Given the GoodRx Defendants’ knowledge of Amazon’s intention to enter the online pharmaceutical business, and their misleading statements about GoodRx’s competitive position made contemporaneously with that knowledge, the GoodRx Defendants’ allegedly made materially false and/or misleading statements and caused GoodRx common stock to trade at artificially inflated prices during the Class Period.
The class action complaint alleges that on November 17, 2020, just weeks after GoodRx completed its IPO, Amazon announced two new pharmacy offerings, a Prime Rx plan and a discount card program, which, among other things, would compete directly with GoodRx’s platform by making it “simple for customers to compare prices and purchase medications for home delivery, all in one place.”
On this news, according to the complaint, the price of GoodRx common stock declined 23%, from $46.72 per share to $36.21 per share by the close of the market on November 17, 2020, erasing more than $4 billion of GoodRx’s market capitalization, thereby damaging GoodRx investors.
