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Investments

iDreamSky securities fraud lawsuit

iDreamSky operates a Chinese mobile game platform.  Like all game platforms, one trick is to turn free users into paying users.  This class action alleges that iDreamSky mislead investors in its IPO about the company’s ability to do just that:  convert free users into paying users.

Boulder Brands lawsuit

Since at least February 2013, Boulder Brand's management had been forecasting gross margin expansion - based in part on a new product mix due to recent acquisitions.  In October, 2014 executives told investors that investor-anticipated gross margin expansion would not happen as forecasted as the company was experiencing inventory problems and not selling enough high margin products.  This lawsuit alleges that Boulder Brands should have made more accurate disclosures about its business problems prior to October, 2014.

Altisource Residential Securities Fraud

This lawsuit is the latest shoe to drop from the Ocwen mortgage fiasco. Both New York and California regulatory agencies have fined and/or suspended Owen from originating and servicing home loans in those states.  Altisource Residential is a REIT that purchases residential assets from Ocwen (generally nonperforming assets).  Altisource Residential was jointly managed by Ocwen executives.  This case alleges that those executives knew of the ongoing state investigations since 2011 and elected not to tell investors, thereby unfairly inflating the stock price.

SanDisk Securities Fraud

In its October 16, 2014 earning announcement, SanDisk led investors to believe that business was on track to meet established revenue forecasts.  Five months later, the company announced revenues would miss those projections by more than 10%.  This securities fraud case alleges that executives knew as early as the October 16, 2014 that revenue numbers would be tough to hit, yet management stood by those projections anyway, which artificially inflated the stock price.

Omnicell shareholder lawsuit

This class action alleges that Omnicell overstated its revenues in at least 2014.  The company is investigating an employee’s claim that a side letter exists between the company and at least one customer to discount (perhaps to zero) software and hardware sales.  Omnicell stock took it on the chin when the company disclosed this letter to its investors.  

Volaris Class Action Lawsuit

This case alleges that Volaris was not in compliance with industry accepted and company endorsed accounting practices during and after its September 15, 2013 IPO.

 

Amira Nature Shareholder Lawsuit

The executives of Amira Nature Foods are accused of - well just about everything:  Falsifying the company’s 2103 and 2014 financial statements; Failing to disclose over a dozen related party transactions; Lining the pockets of relatives; and even wrongfully paying for the CEO’s butler.  Most of the accusations come from a recent research report authored by Prescience Point Research Group.  

Stratasys shareholder suit

Stratasys makes 3-D printers and is engaged in a roll-up strategy (acquiring other companies to round out its product portfolio, revenue mix and distribution channels).  Investors lost 28% of their investment on February 2, 2015 when the company missed its revenue and earnings projections.  The problem, according to executives, relates to the integration of a recent acquisition.  The fear is that the miss shows signs of a slowdown of organic growth and that the company needs acquisitions to generate growth.  This securities fraud class action asks, “why didn’t the executives tell investors earlier if these problems were known to these executives”?

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