Feb 13, 2022 | Shareholder Investigations
Cortexyme, Inc. Investor Alert – Cortexyme Shareholders Who Have Suffered Losses On Their CRTX Investment Encouraged To Contact Kehoe Law Firm, P.C.
On January 26, 2022, Cortexyme, Inc. (“Cortexyme” or the “Company”) (NASDAQ: CRTX) announced that it received a letter from the U.S. Food and Drug Administration (“FDA”) on January 25, 2022, placing a full clinical hold on atuzaginstat’s (COR388) Investigational New Drug application (IND 134303). The Company also announced the immediate implementation of a cost reduction program to rationalize operations.
On this news, shares of Cortexyme dropped more than 30%, closing at $6.21 per share on January 26, 2022.
Cortexyme also reported that on February 2, 2022, the Company’s Board of Directors approved the previously announced cost reduction program to rationalize operations and to allow continued support for the needs of its business following the clinical hold on atuzaginstat’s (COR388) Investigational New Drug application (IND 134303). Under the cost reduction program, Cortexyme stated that it is reducing headcount by approximately 53% through a workforce reduction.
Cortexyme Shareholders Who Have Lost Money On Their Investment
Cortexyme investors who have suffered financial losses are encouraged to complete Kehoe Law Firm’s Securities Class Action Questionnaire or contact Kehoe Law Firm, P.C., [email protected], to discuss potential legal claims.
Feb 4, 2022 | Shareholder Investigations
Kehoe Law Firm, P.C. is investigating whether certain directors and officers of Decarbonization Plus Acquisition Corporation (“DCRB” or “Decarbonization Plus”) breached their fiduciary duties to DCRB’s shareholders.
The investigation concerns whether the board of directors or senior management of DCRB, now known as Hyzon Motors Inc. (“Hyzon Motors”) (NASDAQ: HYZN), failed to manage Decarbonization Plus in an acceptable manner, in breach of their fiduciary duties to DCRB’s shareholders, and whether DCRB’s shareholders suffered damages as a result.
On July 15, 2021, DCRB shareholders of record as of June 1, 2021 approved a merger between DCRB and Hyzon Motors. On September 28, 2021, Blue Orca Capital issued a report critical of Hyzon Motors and its business prospects.
On January 12, 2022, Hyzon Motors announced that it had received a subpoena from the Securities and Exchange Commission for information, including information related to the allegations made in the Blue Orca Capital report.
The Blue Orca Capital (“Blue Orca”) report stated, among other things, that Blue Orca believes that “Hyzon’s supposed major customers are a fake-looking Chinese shell company incorporated three days before the deal announcement and a tiny New Zealand startup which told [Blue Orca] they are not really a customer.”
Blue Orca also reported that “Hyzon is just a repackaging of a flailing Chinese parent company which has been trying to sell the same hydrogen fuel cells without much success for 17 years. The parent entity was delisted from the Chinese OTC exchange in early 2021 at an enterprise value of sub $200 million. Hyzon is just a worse version of this same business in SPAC form, yet trades at 10x the valuation.”
Further, Blue Orca stated that “[n]otably for a zero revenue SPAC banking on the future value of its technology to save its business, two of Hyzon’s chief technology officers have resigned in the past 15 months. The Company is only 20 months old (emphasis in original). Ultimately, [Blue Orca] think[s] Hyzon’s parent has taken advantage of the general suspension of disbelief in financial markets to enrich insiders by repackaging an old technology in a fig leaf of misleading deal announcements and illusory customer contracts.”
FORMER DECARBONIZATION PLUS SHAREHOLDERS MAY HAVE LEGAL CLAIMS AGAINST DCRB’S DIRECTORS AND OFFICERS. IF YOU WERE A DCRB SHAREHOLDER, YOU ARE ENCOURAGED TO CONTACT MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, [email protected], [email protected], TO DISCUSS THE INVESTIGATION AND POTENTIAL LEGAL CLAIMS.
Jan 28, 2022 | Shareholder Investigations
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of GWG Holdings, Inc. (“GWG Holdings” or the “Company”) (NASDAQ: GWGH). The securities class action investigation concerns whether GWG Holdings violated federal securities laws.
On January 18, 2022, GWG Holdings disclosed that “. . . the Company believes that the filing of its Annual Report on Form 10-K for the year ended December 31, 2021, will likely be later than the March 31, 2022 due date for such filing due to the recently disclosed decision of its independent registered public accounting firm to decline to stand for reappointment, which would also likely result in a voluntary suspension of the sale of L Bonds.”
The Company also reported that “. . . the Company did not make the January 15, 2022 interest payment of approximately $10.35 million and principal payments of approximately $3.25 million with respect to its L Bonds,” and GWG Holdings “elected to voluntarily suspend its L Bonds sales effective as of January 10, 2022.”
On this news, GWG’s stock price fell $2.17 per share, or 27.7%, closing at $5.65 per share on January 18, 2022.
Then, on January 27, 2022, The Wall Street Journal reported that GWG Holdings received a subpoena in 2020 from the SEC’s division of enforcement ordering GWG Holdings to produce documents. The paper also reported that an attorney who represents multiple L Bonds investors “said that most of his clients are retail investors who bought the bonds . . . after hearing a sales pitch that the products were safe and would offer a comfortable income stream for their retirement,” but that “[t]hey were shocked to learn that their money was used to pay old investors while the company has been under SEC investigation.”
On this news, GWG’s stock fell more than 20% during intraday trading on January 27, 2022, further injuring investors.
Jan 26, 2022 | Shareholder Investigations
Kehoe Law Firm, P.C. is investigating potential violations of federal securities laws by Gatos Silver, Inc. (“Gatos Silver” or the “Company”) (NYSE: GATO).
On January 25, 2022, Gatos Silver stated that “[d]uring the Company’s resource and reserve update process for the Los Gatos Joint Venture (‘LGJV’), which included a detailed reconciliation of recent production performance, the Company concluded that there were errors in the technical report entitled ‘Los Gatos Project, Chihuahua, Mexico’ with an effective date of July 1, 2020 (the ‘2020 Technical Report’), as well as indications that there is an overestimation in the existing resource model.”
Gatos Silver also stated that “[o]n a preliminary basis, the Company estimates a potential reduction of the metal content of Cerro Los Gatos’ (‘CLG’) mineral reserve ranging from 30% to 50% of the metal content remaining after depletion. Since the 2020 Technical Report, depletion is 1.3 million tonnes grading 284 g/t silver, 3.9% zinc, 2.3% lead and 0.3 g/t gold that has been processed from July 1, 2020 to December 31, 2021. At this time, the Company cannot accurately quantify the exact magnitude of the reduction, and the mineral resource and reserve estimates in the 2020 Technical Report should not be relied upon.”
On this news, the stock price of Gatos Silver was down more than 66% during intraday trading on January 26, 2022.
Jan 25, 2022 | Shareholder Investigations
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of SunPower Corporation (“SunPower” or the “Company”) (NASDAQ: SPWR). The class action investigation concerns whether SunPower violated federal securities laws or engaged in unlawful business practices.
SUNPOWER INVESTORS WHO HAVE SUFFERED FINANCIAL LOSSES ARE ENCOURAGED TO COMPLETE KEHOE LAW FIRM’S SECURITIES CLASS ACTION QUESTIONNAIRE.
On January 20, 2022, SunPower announced that “[t]hrough a product quality assessment, the company has identified a cracking issue that developed over time in certain factory-installed connectors within third-party commercial equipment supplied to SunPower.”
SunPower stated that “SunPower expects approximately $27 million of supplier-quality related charges in fourth quarter 2021 and approximately $4 million in the first quarter of 2022 as it pursues recovery of costs from the suppliers. The charges are expected to be funded with cash on hand.”
On this news, SunPower’s stock dropped $3.22, or 16.9%, to close at $15.80 on January 21, 2022.
SUNPOWER INVESTORS WITH FINANCIAL LOSSES ARE ENCOURAGED TO CONTACT EITHER JOHN KEHOE, ESQ., (215) 792-6676, EXT. 801, [email protected], OR MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, [email protected], [email protected], TO DISCUSS THE CLASS ACTION INVESTIGATION OR POTENTIAL LEGAL CLAIMS.
Jan 7, 2022 | Shareholder Investigations
Kehoe Law Firm, P.C. is investigating whether FirstCash, Inc. (“FirstCash” or the “Company”) (NASDAQ: FCFS) violated federal securities laws or engaged in other unlawful business practices.
On November 12, 2021, the Consumer Financial Protection Bureau (“CFPB”) filed a lawsuit in the United States District Court for the Northern District of Texas against FirstCash and Cash America West, Inc.
FirstCash owns and operates over 1,000 retail pawnshops in the United States, offering pawn loans through its wholly-owned corporate subsidiaries, including Cash America West. Cash America West operates pawn stores in Arizona, Nevada, Utah, and Washington. The CFPB alleged that FirstCash and Cash America West made pawn loans to active-duty service members and their dependents that violated the Military Lending Act (“MLA”).
The MLA, according to the CFPB, puts in place protections in connection with extensions of consumer credit for active-duty service members and their dependents, who are defined as “covered borrowers.” These protections include a maximum allowable annual percentage rate of 36%, known as a Military Annual Percentage Rate (“MAPR”), a prohibition against required arbitration, and certain mandatory loan disclosures.
The CFPB alleged that between June 2017 and May 2021, FirstCash and Cash America West made over 3,600 pawn loans out of four of its stores to more than 1,000 covered borrowers that violated prohibitions of the MLA by imposing a MAPR greater than the MLA’s 36% cap; using loan agreements requiring arbitration in the case of a dispute; and without making required loan disclosures. The CFPB further alleged that since October 3, 2016, FirstCash has, together with Cash America West and other wholly-owned subsidiaries, made additional pawn loans in violation of the MLA from stores in these and other states.
In 2013, the CFPB ordered Cash America International, Inc. to halt its misconduct against military families, prohibiting Cash America and its successors from violating the MLA. FirstCash is a successor to Cash America and, according to the CFPB, therefore subject to the 2013 order. The CFPB alleged that FirstCash’s violations of the MLA violated the prohibitions of the Bureau’s 2013 order and, consequently, the Consumer Financial Protection Act of 2010. The CFPB’s complaint seeks redress for consumers, injunctive relief, and a civil money penalty.
On this news, shares of FirstCash stock fell 9% during intraday trading on November 12, 2021.
