Articles Posted in Class action

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Farmland PartnersPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Farmland Partners (NYSE:FPI) in connection to alleged violations of securities laws by FPI. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Farmland Partners between May 9, 2017 and July 10, 2018.

The class action complaint specifically alleges that during the period in question, FPI might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that the company engaged in artificial revenue-inflation by providing loans to “related-party tenants” who returned the funds to the company as rent; that consequently the company’s revenues were overstated; and that consequently the company’s statements to the public during the relevant period were false and misleading. When this news was announced via an online publication on July 11, 2018, the company’s stock declined $3.37/share, or approximately 39%, closing at $5.28/share on that day. The complaint alleges that when true details emerged, investors suffered losses.

According to the company’s website, Farmland Partners is a real estate company “that owns and seeks to acquire high-quality farmland throughout North America addressing the global demand for food, feed, fiber and fuel.” According to its description, as of May 9, 2018, the company owns “or has under contract” more than 166,000 acres in states including Alabama, Arkansas, California, Colorado, Florida, Michigan, Mississippi, Nebraska, Texas and Virginia. Its lands are farmed by “over 125 tenants” who are farming over “30 major commercial crops.” The company trades on the New York Stock Exchange under the symbol FPI.

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Sibanye Gold LimitedPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Sibanye Gold Limited (NYSE:SBGL) in connection to alleged violations of securities laws by SBGL. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Sibanye Gold Limited from April 7, 2017 until June 26, 2018.

The class action complaint specifically alleges that during the period in question, SBGL might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the company’s corporate culture emphasized short-term profits above safety; that consequently, fatalities in the company’s mines comprised almost 50% of South Africa’s mining fatalities in 2018; and that consequently the company’s statements to the public about its business, operations and prospects were false and misleading. When a Bloomberg report published on June 26, 2018 stated that a worker had been killed at one of the company’s operations in South Africa, “bringing the total deaths at the company’s mines this year to 21,” the company’s stock declined.

According to the company’s website, Sibanye is “an independent, global, precious metals mining company, produces a unique mix of metals that includes gold and PGMs.” It describes itself as the world’s third-largest producer of platinum and palladium and states that it owns and operates “a portfolio of high-quality operations and projects” located and managed in South Africa and in the United States. The company is headquartered in South Africa and trades on the New York Stock Exchange under the symbol SBGL.

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Restoration RoboticsPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Restoration Robotics (NASDAQ:HAIR) in connection to alleged violations of securities laws by HAIR. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Restoration Robotics, particularly in securities pursuant to its IPO, between October 9, 2017 and June 21, 2018.

The class action complaint specifically alleges that during the period in question, HAIR might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely when the company held its initial public offering, it represented to investors that proceeds from the IPO would fund the company’s operations for a year, and that its robotic implantation functionality was prepared for launch. Later, on March 20, 2018, the company revealed that it intended to “complete the necessary design and engineering work to launch the implantation functionality” by the end of that year. The company additionally represented that it was in a good position to expand its domestic operations by ramping up sales, but in fact, it did not have a salesforce adequate to do so. The company acknowledged by the close of Q1 2018 that it lacked “sufficient capital to fund its planned operations,” and currently trades at less than half its IPO price.

According to the company’s website, Restoration Robotics is a “medical device company developing and commercializing the ARTAS® Robotic Hair Transplant System.” It describes itself as possessing “unique expertise” in such areas as machine vision, visual servoing and robotics, and image guidance. The company is headquartered in Silicon Valley and trades on the Nasdaq exchange under the symbol HAIR.

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Switch, Inc.Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Switch, Inc. (NYSE:SWCH) in connection to alleged violations of securities laws by SWCH. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Switch, Inc., in particular, Class A common stock pursuant to its initial public offering, between October 3, 2017 and June 11, 2018.

The class action complaint specifically alleges that during the period in question, SWCH might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that the company’s facilities in Grand Rapids, Michigan and Atlanta, Georgia would never reach the same profitability of its Las Vegas, Nevada facility; that this reduced the yield on the company’s capital expenditures which will be borne by the acquisition and building out of those facilities; that the company’s high capital expenditures, made to generate high redundancy levels at these facilities, were not attaining the same profitability that they had previously; that the company had spent more than $64 million in additional funds on un-budgeted capital expenditures in Q3 2017, and that it had not disclosed these expenditures to its investors until after its initial public offering; that the company recognized revenues of $9.4 million in fiscal year 2017 for which it would not provide colocation services until fiscal year 2018; that consequently it had overstated its reported revenue growth for FY17, as well as its revenue prospects for FY18; that the company’s biggest colocation customer, eBay, was not going to possess its reserved colocation space at the company’s facility in Tahoe/Reno at the beginning of 2018; and that consequently the company’s business and financial prospects at the time of its IPO did not match with representations made in its Registration Statement. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, Switch, Inc. is a “technology infrastructure ecosystem corporation whose core business is the design, construction and operation of the most advanced data centers, which are the foundations of the most powerful technology ecosystems on the planet.” Founded in 2000, the company builds and operates data centers and has more than 500 issued patents or pending patent claims. It is headquartered in Las Vegas, Nevada and trades on the New York Stock Exchange under the symbol SWCH.

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Flex Pharma Class ActionPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Flex Pharma (NASDAQ:FLKS) in connection to alleged violations of securities laws by FLKS. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Flex Pharma between November 6, 2017 and June 12, 2018.

The class action complaint specifically alleges that during the period in question, FLKS might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that the company made overstatements regarding the viability and approval prospects of FLX-787, its product candidate for ALS and CMT treatment; and that consequently the company’s statements to the public during the relevant period were false and misleading. When the company announced, on June 13, 2018, that it intended to cease two separate trials of FLX-787, as a result of tolerability concerns, and announced additionally that it would undergo restructuring to cut costs, as well as its board’s consideration of a potential sale or merger, the company’s stock declined $3.14/share in value, or 75.12%, to a close of $1.04/share on that day.

According to the company’s website, Flex Pharma is a biotechnology company engaged in the development of “innovative and proprietary treatments for muscle cramps, spasms and spasticity associated with the severe neurological diseases of ALS, MS and peripheral neuropathies such as Charcot-Marie-Tooth.” It is headquartered in Boston, Massachusetts and trades on the Nasdaq exchange under the symbol FLKS.

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Akers BiosciencesPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Akers Biosciences (NasdaqCM:AKER) in connection to alleged violations of securities laws by AKER’s officers and directors. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Akers Biosciences from May 15, 2017 until June 5, 2018.

The class action complaint specifically alleges that during the period in question, AKER might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company improperly recognized revenue for the fiscal year ending December 31, 2017; that the company had understated deficiencies in the internal controls governing financial reporting; that the company had failed to disclose the extent of those deficiencies; and that consequently the company’s statements to the public about its business, operations and prospects during the relevant period were false and/or misleading and/or had no reasonable basis. More specifically, the company disclosed on May 21, 2018 that it would not be able to file its Form 10-Q for the quarter ending March 31, 2018, because it was engaged in a review of the characterization of some of its revenue recognition items. A little over a week later, on May 29, 2018, one of the company’s directors, Raymond F. Akers Jr., resigned from his position. A few days later, on June 1, 2018, the company filed a Form 8-K stating that Mr. Akers Jr. declined to fully cooperate with the aforementioned review of the company’s revenue recognition items. Then, on June 5, 2018, the company filed Form 8-K/A which contained a statement on Mr. Akers’ behalf that the language concerning him in the previous filing was incorrect; that he was acting as a whistleblower; and that his refusal to approve the Form 10-K for the year ending December 31, 2017 had resulted in the company’s internal review. Following the public revelation of this news, AKER declined approximately 30%, closing on June 6, 2018 at $0.46/share.

According to the company’s website, Akers Biosciences is a biotechnology company “with the objective of developing proprietary, in vitro diagnostic technologies that accelerate the rate at which clinicians, and in some cases consumers, can obtain health information.” It was founded in 1989 and is currently known as Akers Bio. Its products include clinical diagnostics tests, safety diagnostics tests, and wellness products. The company is headquartered in West Deptford, New Jersey and trades on the Nasdaq exchange under the symbol AKER.

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Edge TherapeuticsPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Edge Therapeutics (NASDAQ:EDGE) in connection to alleged violations of securities laws by EDGE. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Therapeutics between December 29, 2017 and March 27, 2018.

The class action complaint specifically alleges that during the period in question, EDGE might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that EG-1962, the company’s lead product candidate, was likely to fail its futility analysis in the NEWTON 2 study; and that consequently the company’s financial statements, as well as its statements to the public about its business, operations and prospects during the relevant period, were false and misleading. The company disclosed on March 28, 2018, that “a pre-specified interim analysis on data from the Day 90 visit of the first 210 subjects randomized and treated in the Phase 3 NEWTON 2 study of EG-1962 demonstrated a low probability of achieving a statistically-significant difference compared to the standard of care in the study’s primary endpoint, if the study is fully enrolled.” The company’s Data Monitoring Committee had recommended, in connection to this, that based on its conclusion that the study was unlikely to meet its primary endpoint, the study should be halted. The company announced that as a result of this recommendation, it had decided to end the Phase 3 NEWTON 2 study. After this news was announced, the company’s stock declined about 92%, or $14.28/share, closing at $1.31/share on that day. The complaint alleges that when true facts came to light, investors suffered losses.

According to the company’s website, Edge Therapeutics is a biotechnology company involved in the discovery, development and commercialization of new, hospital-based therapies for the treatment of “acute, life-threatening neurological and other conditions.” The company’s description states that its product candidates use its “proprietary, programmable, biodegradable polymer-based development platform (the Precisa™ development platform), and a novel delivery mechanism that seeks to enable targeted and sustained drug exposure and avoid the dose-limiting side effects associated with the current standard of care systemic delivery.” The company also states, in this description, its belief that its lead product candidate EG-1962 “fundamentally improve patient outcomes and transform the management of aneurysmal subarachnoid hemorrhage, or aSAH, which is bleeding around the brain due to a ruptured brain aneurysm.” The company trades on the Nasdaq exchange under the symbol EDGE.

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Myriad GeneticsPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Myriad Genetics (NASDAQ:MYGN) in connection to alleged violations of securities laws by MYGN. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Myriad Genetics between August 13, 2014 and March 12, 2018.

The class action complaint specifically alleges that during the period in question, MYGN might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that the company filed Medicare and Medicaid payment claims that were false or inappropriate for its hereditary cancer testing; that were this conduct to come to light, it could result in increased regulatory scrutiny and/or enforcement action against the company; that the revenues generated from these inappropriate activities was not sustainable; and that consequently the company’s statements to the public during the relevant period were false and misleading. When the company disclosed post-market on March 12, 2018 that it had received a subpoena from the Department of Health and Human Services, Office of the Inspector General, connected to an “investigation into possible false or otherwise improper claims submitted for payment under Medicare and Medicaid,” the company’s stock declined $4.01/share, or 12.14%, closing at $29.01/share on the following day. The complaint alleges that when true facts emerged, investors suffered losses.

According to the company’s website, Myriad Genetics is a healthcare company “focused on revolutionizing patient care” by discovering, developing, and marketing new molecular diagnostic tests across a variety of specialties. The company notes that more than 1.5 million patients have benefited from its hereditary genetic cancer testing. It trades on the Nasdaq exchange under the symbol MYGN.

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Colony NorthstarPublicly available records indicate that a class action lawsuit has been filed on behalf of investors in Colony Northstar (NYSE:CLNS) in connection to alleged violations of securities laws by CLNS. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Colony Northstar between February 28, 2017 and March 1, 2018.

The class action complaint specifically alleges that during the period in question, CLNS might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, namely: that the company’s Healthcare and Investment Management segments were experiencing performance below the company’s reports; and that consequently the company’s statements to the public during the relevant period were false and misleading. The complaint alleges that when true details emerged, investors suffered losses.

According to the company’s website, Colony Northstar is a diversified equity real estate investment trust that has “an embedded institutional and retail investment management business.” It focuses on creating “attractive, risk-adjusted returns” as well as long-term value for its shareholders and investors by way of its “global scale and operating platform,” its access to capital markets, and its ability to make investments throughout the capital stack. The company operates 18 locations across the world, maintains $43 billion in assets under its management, and has 500 employees worldwide as of December 31, 2017. It trades on the New York Stock Exchange under the symbol CLNS.

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Foot Locker

Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Foot Locker (NYSE:FL) in connection to alleged violations of securities laws by FL. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Foot Locker from August 19, 2016 until August 17, 2017.

The class action complaint specifically alleges that during the period in question, FL might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company’s vendors were undergoing a transition to making sales through online retail platforms; that as a result, the usefulness of the company’s physical retail stores was decreasing, as was the value of its relationship with these vendors; that the company faced higher price competition, due to an increase in online retail competition, at the same time that the demand at its brick-and-mortar stores had gone down; that consequently the company’s stock was trading at an artificially inflated price when it reached a high of $79.20/share, allowing executives to sell more than 192,000 shares of their stock for gross proceeds totaling $13.3 million. The company disclosed, on August 18, 2017, that it had experienced poor financial results in Q2 2017, as well as a 6% decrease in quarterly same-store sales year-over-year, resulting a revenue miss. The company also announced that it was shutter approximately 130 stores and that it expected weaker sales in the rest of the fiscal year. After this news was announced, the company’s stock declined approximately 28%, closing at $34.38/share on that day. The complaint alleges that when true details emerged, investors suffered losses.

According to the company’s website, Foot Locker “is a leading global athletic footwear and apparel retailer, which caters to the sneaker enthusiast” that provides selection in “premium products for a wide variety activities,” such as basketball, running and training. The company operates 1,835 stores in 23 countries, according to its website, and it trades on the New York Stock Exchange under the symbol FL.