AUPH INVESTOR NOTICE: GLOBAL INVESTOR COUNSEL ROSEN Encourages Aurinia Pharmaceuticals Inc. Investors Suffering Losses to Seek Advice Ahead of Important Deadline in Securities Class Action – AUPH

Class Period: October 22, 2021 IPO

Lead applicant deadline: June 13, 2022

In October 2021, the Company completed its IPO, selling 7,690,400 shares of Class A common stock at $19.00 per share.

On March 29, 2022, after market close, Stronghold announced its fourth quarter and full year 2021 financial results. The company reported a net loss of $0.52 for the quarter, below analyst estimates of $0.04 in earnings per share, and Stronghold’s CEO cited “significant headwinds in our operations that have had a significant impact on recent financial performance.”

As a result of this news, the company’s stock price fell $3.28, or 32%, to close at $6.97 per share on March 30, 2022. As of April 14, 2022, the stock Stronghold was trading as low as $4.78 per share, a more than 75% drop from the IPO price of $19 per share.

The complaint filed in this class action alleges that the registration statement was materially false and misleading and failed to state: (1) that contracted suppliers, including MinerVa, were reasonably likely to miss quantities and deadlines scheduled deliveries; (2) that due to the high demand and pre-sold supply of mining equipment in the industry, Stronghold would have difficulty obtaining miners outside of confirmed purchase orders; (3) that as a result of the foregoing, there was a significant risk that Stronghold would not be able to expand its mining capacity as planned; (4) that as a result, Stronghold would likely suffer significant losses; and (5) as a result, defendants’ statements about its business, operations and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.

For more information about the Stronghold class action, go to: https://bespc.com/cases/SDIG

ABBVie, Inc. (NYSE: ABBV)

Course period: April 30, 2021 – August 31, 2021

Lead Applicant Deadline: June 6, 2022

AbbVie is one of the largest pharmaceutical companies in the world. The company’s revenues will come under significant pressure in the coming years when its top-selling drug, Humira, loses patent protection in 2023. As a result, AbbVie’s future revenues and profits are largely dependent on its ability to develop new revenue streams to offset Humira’s lost sales. Rinvoq, an anti-inflammatory drug made by AbbVie and used to treat rheumatoid arthritis (RA) and other conditions by inhibiting Janus kinase (JAK) enzymes, has been touted as one such drug. Rinvoq was originally approved in the United States to treat moderate to severe rheumatoid arthritis only. However, AbbVie was actively pursuing additional treatment indications and in 2020 applied to the US Food and Drug Administration (FDA) to approve Rinvoq for the treatment of several other conditions.

As relevant here, Rinvoq is similar to other JAK inhibitor drugs, including Xeljanz, made by Pfizer Inc. When the FDA approved Xeljanz in 2012 for the treatment of rheumatoid arthritis, it took a safety trial additional to assess the risk of Xeljanz triggering certain serious side effects. effects. Beginning in February 2019, the FDA repeatedly warned the public that safety testing indicated that using Xeljanz could lead to serious heart problems, cancer, and other adverse events. Notwithstanding the similarities between Rinvoq and Xeljanz, during the class period the defendants assured investors that Rinvoq was significantly safer than Xeljanz and not subject to the same regulatory risks.

However, investors began to uncover the truth about Rinvoq’s significant risks on June 25, 2021, when AbbVie revealed that the FDA was delaying its review of expanded treatment applications for Rinvoq due to safety concerns associated with Xeljanz. On this news, AbbVie’s common stock price declined $1.76 per share, or approximately 1.5%, from a close of $114.74 per share on June 24, 2021 to $112.98. per share on June 25, 2021.

Then, on September 1, 2021, the FDA announced that the final results of the Xeljanz safety trial established an increased risk of serious adverse events, even with low doses of Xeljanz. As a result, the FDA has determined that it will require new and updated warnings for Xeljanz and Rinvoq because Rinvoq “shares[s] similar mechanisms of action with Xeljanz” and “may have similar risks as seen in the Xeljanz safety trial. The FDA has also indicated that it will further limit the approved indications for Rinvoq due to these safety concerns. AbbVie common stock fell $8.51 per share, or more than 7%, from a close of $120.78 per share on August 31, 2021 to $112.27 per share on September 1, 2021.

After the appeal period, on December 3, 2021, AbbVie announced that the FDA had updated the Rinvoq label to require additional safety warnings and limit the marketing of Rinvoq to use only after treatment failure with other medications. On January 11, 2022, the defendants admitted that these Rinvoq label changes would negatively impact sales, causing the company to reduce its long-term forecast for Rinvoq sales in 2025.

The Complaint alleges that, throughout the Class Period, the Defendants made materially false and/or misleading statements regarding the company’s business and operations. Specifically, defendants misrepresented and/or failed to disclose that: (1) the safety concerns regarding Xeljanz extended to Rinvoq and other JAK inhibitors; (2) as a result, it was likely that the FDA would require additional safety warnings for Rinvoq and delay approval of additional treatment indications for Rinvoq; and (3) as a result, defendants’ statements about the company’s business, operations and prospects lacked a reasonable basis. Due to the defendants’ wrongful acts and omissions and the significant decline in the market value of AbbVie’s securities, AbbVie’s investors suffered substantial damages.

For more information about the AbbVie class action, go to: https://bespc.com/cases/ABBV

Twitter, Inc. (NYSE: TWTR)

Course period: March 24, 2022 – April 1, 2022

Lead applicant deadline: June 13, 2022

Elon Musk, the founder of Tesla and Space-X, and according to Forbes, the richest person in the world, began acquiring shares of Twitter from January 2022. By March 14, 2022, Musk had acquired more than 5% of property. stake in Twitter, requiring it to file Schedule 13 with the United States Securities and Exchange Commission (“SEC”) within 10 days, March 24, 2022.

Musk failed to file a Schedule 13 with the SEC within the required time frame and instead continued to accumulate Twitter shares, eventually acquiring a 9.1% stake in the company before finally filing a Schedule 13 on April 4. 2022. By the time Musk filed the required Schedule 13, revealing his stake in Twitter, the company’s stock fell from a closing price of $39.31 per share on April 1, 2022 to 49, $97 per share on April 4, 2022, an increase of approximately 27%.

Investors who sold shares of Twitter Stock between March 24, 2022 and before the effective disclosure on April 4, 2022, missed the resulting share price increase as the market reacted to Musk’s buying . By failing to disclose his stake in a timely manner, Musk was able to acquire shares of Twitter cheaply during the class period.

For more information on the Twitter class action, visit: https://bespc.com/cases/TWTR

Li-Cycle Holdings Corp. (NYSE: LICY)

Course period: February 16, 2021 – March 23, 2022

Lead Applicant Deadline: June 20, 2022

On March 24, 2022, Blue Orca Capital released a report (the “Report”) describing the company as “a near-fatal combination of stock promotion, laughable governance, a bankrupt company with a cash haemorrhage, and… ‘very questionable Enron-type accounting’. According to the report, “Li-Cycle recognizes revenue using an Enron mark-to-model accounting gimmick Li-Cycle recognizes revenue months in advance of actual sales of its recycled black mass, based on its own tentative estimate of the future value of the product. This accounting treatment is clearly vulnerable to abuse, giving Li-Cycle discretion over its reported earnings. We suspect that as part of this, Li-Cycle is marking up the value of its claims on unsold products and manages earnings through doubling its revenue.”

According to the lawsuit, the defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) Li-Cycle’s largest customer, Traxys North America LLC, did not is not actually a customer, but merely a broker providing financial capital to the Company while Traxys attempts to sell Li-Cycle’s product to end customers; (2) the Company has engaged in transactions with highly questionable related parties; (3) the Company’s mark-to-model accounting is vulnerable to abuse and gives a false impression of growth; (4) a significant portion of the Company’s reported revenue was derived simply from gross up receivables on products that had not been sold; (5) the gross margins of the Company have probably been negative since its inception; (6) the Company will need an additional $1 billion in funding to support its expected growth (which is more than the Company raised through the merger); and (7) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times. When the real details entered the market, the lawsuit claims investors suffered damages.

On this news, Li-Cycle’s stock price fell $0.47 per share, or 5.60%, to close at $7.93 per share on March 24, 2022.

For more information on the Li-Cycle class action, go to: https://bespc.com/cases/LICY

About Bragar Eagel & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com . Lawyer advertisement. Prior results do not guarantee similar results.

Contact information:

Bragar Eagel & Squire, CP
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
[email protected]
www.bespc.com

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