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Investments

Bancorp hit with shareholder lawsuit re pre-paid cards

Bancorp bills itself as one of the largest issuers of pre-paid credit cards.  The company was recently forced to enter into a Consent Order with the FDIC for alleged past violations of the Bank Secrecy Act.  This Consent Order limits Bancorp’s ability to issue pre-paid cards.  Senior executives anticipate no change in business.  Analysts are not so sure.  The stock got crushed.  This securities fraud case then addresses the question of whether senior executives should have done a better job of complying with the Bank Secrecy Act and whether senior executives knew of the noncompliance issues but failed to address or even disclose them.

Rockwood takeover acquisition lawsuit

Rockwood Holdings, Inc. (ROC) and Albemarle Corporation, a Virginia corporation (“Albemarle”), announced that they have entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Albemarle will acquire the Rockwood in a cash and stock transaction valued at approximately $6.2 billion. 

Liquidity Services charges with securities fraud in shareholder lawsuit

Did Liquidity Services knowingly overstate the company’s business prospects to investors, all while key insiders were unloading their own shares?  That is the basic allegation in this securities fraud class action lawsuit against the company and key executives.

Kodiak Oil & Gas Corp. (KOG) has entered into a definitive agreement to be acquired by Whiting Petroleum Corporation (WLL).  It is an all-stock transaction that values Kodiak Oil at $6.0 billion, based on the closing price of Whiting on July 11, 2014, and including Kodiak’s net debt of $2.2 billion as of March 31, 2014.

Voxx sued by shareholder for securities fraud

On May 14, 2104, Voxx reported horrible numbers and investors took it on the chin.  This shareholder suit alleges that senior executives knew of the pending bad numbers well in advance of reporting them, but failed to disclose the bad news in a timely fashion and perhaps even purposely misled investors.

China Mobile (CMGE) hit with securities fraud shareholder lawsuit

On June 19, 2014, China Mobile Games & Entertainment Group (CMGE) disclosed that it had removed at least nine executives from the company based on allegations of bribery.  This lawsuit then addresses the question of whether these bribery charges (and other allegations of self dealing) constitutes securities fraud under US laws.  Particularly troubling, is the fact that the company completed a secondary offering less than six weeks before the disclosure, raising serious questions about who knew what and when.

Vitacost merger takeover lawsuit

Vitacost.com, Inc. (VITC) has entered into a definitive agreement to be acquired by Kroger.  It is an all cash takeover and each VITC shareholder will receive $8 per share.  The total value of the transaction is $280 million.

Endocyte ECTY Securities Fraud Lawsuit

If you are an investor in Endocyte, then you know of its phase III clinical trial ovarian cancer therapy named VYNFINIT®.  This securities fraud class action addresses the question of whether senior executives overstated the likelihood of that drug getting FDA approval.

 

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