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Calavo Growers Shareholder Sues Re securities fraud

This case is about how a public company accounts for something called “contingent consideration”.  Many times a company will require a prospective acquisition target to earn its sale price, meaning part of the sale includes a negotiated “earn out” period, where the company being acquired must meet certain post-merger financial goals to get paid part of the sale price.  As this contingency becomes more certain, the acquiring company must treat the earn out payment as a company liability.  This securities fraud case alleges that Calavo Growers improperly accounted for the contingency consideration when it bought Renaissance Food.

E*Trade Limit Order Invetigation

E*Trade gets and keeps a kickback for almost every “non-directed, standing limit order” it places for its clients.  Many brokerage houses rebate the kick-backed amount to the client.  Apparently, not E*Trade.  This class action investigation focuses on E*Trades practice and asks the basic question of whether it violates E*Trades “duty of best execution.”

Roka shareholder alleges fraud in IPO documents

Roka Biosciences went public on July 14, 2014.  The company makes devices able to detect foodborne pathogens such as Salmonella and Listeria.  Four months after its IPO, Roka announced horrible earnings.  The stock lost over 60% of its value that day.  This securities fraud class action questions the veracity of statements made in the IPO documents about future growth and revenue and whether the company and underwriters properly disclosed industry trends and business risks.

INVN shareholder lawsuit alleges fraud

InvenSense has a supply agreement with Apple to provide sensors for the iPhone 6.  This securities fraud class action addresses the question of whether InvenSense properly disclosed to investors the heavy discount it would have to provide to Apple as part of this supply agreement.

FIVE shareholders sue for securities fraud

Five Below shareholders lost almost $600 million on value in one trading day when Five Below announced disappointing sales and income numbers and that the two founders (having sold the vast majority of their stock) were departing the company, leaving an untested new CEO in their stead.  This securities fraud class action alleges that Five Below failed to timely disclose to investors the pending departure of the two founders and that the company misrepresented business prospects.

Petrobras shareholder lawsuit re scandal

Petrobras is caught up in a salacious bribery and kickback scandal.  Former executives allegedly engineered a multi billion dollar scheme to award inflated contracts to a cartel of third party vendors and then both kick back money to these executives and bribe politicians.  This lawsuit seeks to recover all damages suffered by investors in Petrobras’ ADS’s, which are traded on US-based exchanges.

Salix lawsuit alleges securities fraud

Salix Pharmaceuticals lost nearly $3 billion in market value overnight.  The company announced disappointing earning and a stunning increase in wholesale inventory levels of its key drugs, raising real concern about future revenue.  This class action accuses senior executives of knowingly overstating Salix’ business prospects during the class period.

Digital River merger under review

Digital River, Inc. (DRIV) announced that it has entered into a definitive merger agreement to be acquired by an investor group led by Siris Capital Group, LLC (collectively “Siris”) in a transaction valued at approximately $840 million.  Under the terms of the agreement, Siris will acquire all of the outstanding common shares of Digital River for $26.00 per share in cash.  The agreement was approved by Digital River’s Board of Directors, which recommended that Digital River stockholders adopt the agreement with Siris.

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