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Investments

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”?

Movado investor sues for securities fraud

When Movado announced earnings on March 26, 2014, Movado’s executives reassured investors that the company would continue to grow sales at the 10% range and operating profits would continue to trend towards 20%.  Nine months later, Movado announced horrible earning plus a go forward sales growth rate of maybe 1% and operating profits of less than 10%.  This securities fraud lawsuit alleges that executives at Movado misrepresented the business prospects of the company over those nine months.

Venaxis class action based on FDA denial of submission

Venaxis shareholders took it on the chin on January 28th, 2015 when the FDA denied the company’s 510(k) submission for its APPY1 diagnostic test, a test to determine low risk of acute appendicitis.  This lawsuit alleges that company executives misrepresented the likelihood that the FDA would approve the 510(k) submission for APPY1.

Alibaba shareholder lawsuit

This lawsuit alleges Alibaba failed to disclose to investors during its $25+ billion US IPO that Alibaba met with Chinese regulators two months prior to the IPO and that at that meeting Chinese regulators expressed material concerns about certain Alibaba business practices.

HLSS Shareholder lawsuit re Ocwen servcing

Ocwen is the fourth-largest mortgage servicer in the country and largest subprime mortgage servicer in the United States.  William Erbey was Chairman of at least 6 Ocwen-related companies, including Home Loan Servicing Solutions.  Erbey resigned from each when it was disclosed that Ocwen would pay a large fine for its handling of it servicing obligations in New York and that California was contemplating banning Ocwen from servicing California loans.  Because Home Loan Servicing is the entity that purchases servicing rights from Ocwen, Home Loan Servicing stock dropped dramatically in this news.  This securities fraud class action addresses the question of whether shareholders were mislead by executives.

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.

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