NEW YORK, May 02, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been filed on behalf of shareholders of FAT Brands, Inc. (FAT), Cano Health, Inc. (:CANO), Vertiv Holding Co. (:VRT) and Homology Medicines, Inc. (FIXX). Shareholders have until the deadlines below to ask the court to serve as lead plaintiff. Additional information on each case can be found at the link provided.
Trademarks FAT, Inc. (FAT)
Course period: December 4, 2017 – February 18, 2022
Lead Applicant Deadline: May 17, 2022
The class action seeks to determine whether the Company made false and/or misleading statements and/or failed to disclose relevant information to investors. FAT Brands is the subject of a report published by the Los Angeles Times on February 19, 2022. According to the Times, “Federal authorities have investigated Andrew Wiederhorn, chief executive of the company that owns the Fatburger and Johnny Rockets restaurant chains, and examining the actions of a family member in an investigation into allegations of securities and wire fraud, money laundering and attempted tax evasion, court records show.
On this news, shares of FAT Brands fell $2.42, or 22.9%, to close at $8.14 per share on Feb. 22, 2022, hurting investors.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors: (1) the company and the Wiederhorns engaged in transactions “without a legitimate business purpose”; (2) the company ignored warning signs relating to transactions with the Wiederhorns; (3) as a result, the Company was subject to heightened scrutiny, investigations and other potential issues; (4) certain executives, who are portrayed as critical to the success of the Company, were at high risk of scrutiny, at least in part, because of the Company’s actions; (5) the company’s chief executive officer (CEO) and chief operating officer (COO) were under investigation regarding transactions with the company; and (6) 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.
For more information on the FAT class action, go to: https://bespc.com/cases/FAT
Cano Health, Inc. (:CANO)
Course period: May 18, 2020 – February 25, 2022
Lead Applicant Deadline: May 17, 2022
On February 28, 2022, Cano Health, Inc., a primary care provider for seniors and underserved communities, announced that it would delay the release of fourth quarter and full year 2021 financial statements, originally scheduled for today due to the results of a recent internal audit. . The audit revealed certain non-cash adjustments related to revenue recognition that may impact when and how the company recognizes revenue related to Medicare risk adjustments.
On this news, the price of Cano’s Class A common stock fell $0.32 per share, or 6.17%, to close at $4.87 per share on February 28, 2022.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors: (i) Cano overstated its due diligence efforts and expertise in acquiring target businesses; (ii) as a result, Cano performed inadequate due diligence to determine whether the Company, post-business combination, could properly account for the timing of revenue recognition as prescribed by ASC 606, particularly with respect to relates to Medicare risk adjustments; (iii) as a result, the Company misreported its capitation revenues, direct patient expenses, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued liabilities; (iv) as a result, the Company was at increased risk of not filing one or more of its periodic financial reports on time; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
For more information on the Cano class action, please visit: https://bespc.com/cases/CANO
Vertiv Holding Co. (:VRT)
Course period: April 28, 2021 – February 23, 2022
Lead applicant deadline: May 23, 2022
On Feb. 23, 2022, at 6:00 a.m. EST, Vertiv reported disappointing financial results, including Q4 2021 earnings per share of $0.06, missing analyst estimates of $0.28 per share. Vertiv’s chief executive blamed poor results on management “constantly underestimating[ing] inflation and supply chain constraints for timing and degree, which dictated a lukewarm price response in 2021.”
Following this news, the company’s stock price fell $7.19, or 37%, to close at $12.38 per share on February 23, 2022, on unusually high trading volume.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors: (1) that the company could not adequately respond to supply chain issues and inflation by raising its prices; (2) that due to increased costs, Vertiv’s revenues would be adversely affected; and (3) that as a result of the foregoing, defendants’ positive statements about the company’s business, operations and prospects were materially misleading and/or lacked reasonable basis.
For more information on the Vertiv class action, please visit: https://bespc.com/cases/VRT
Homology Medicines, Inc. (FIXX)
Course period: June 10, 2019 – February 18, 2022
Lead Applicant Deadline: May 24, 2022
Homology, a genetic medicine company, is focused on transforming the lives of patients with rare genetic diseases. The Company’s lead product candidate is HMI-102, which is in a Phase I/II clinical trial of pheNIX, a gene therapy for the treatment of phenylketonuria (PKU) in adults (the “HMI-102 Trial”) ). On June 10, 2019, Homology issued a press release announcing that it had commenced enrollment of the HMI-102 trial.
The Complaint alleges that throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, the defendants made false and/or misleading statements and/or failed to disclose that: (i) the company overestimated the efficacy and risk mitigation of the HMI-102; (ii) therefore, it was unlikely that the Company would be able to market the HMI-102 in its current form; and (iii) as a result, the Company’s public statements were materially false and misleading at all material times.
On July 21, 2020, Mariner Research (“Mariner”) released a report questioning claims made by Homology and its executives about the efficacy of HMI-102, the company’s lead product candidate for the treatment of phenylketonuria . Mariner focused on Homology’s HMI-102 dose escalation pheNIX trial, concluding that the company had covered up data showing the lack of efficacy of HMI-102 and indicating that it was unlikely that the program goes to commercialization. Among other evidence, Mariner cited an email from Homology’s director of communications that appeared to indicate the company was aware that a patient on a high dose of HMI-102 had reported the adverse efficacy issue in a social media post. social in April 2020.
On this news, Homology’s stock price fell $1.71 per share, or 10.38%, over the next three trading days, closing at $14.77 per share on July 24, 2020.
Then, on February 18, 2022, Homology issued a press release revealing that “the United States Food and Drug Administration has informed the company that its pheNIX gene therapy trial of HMI-102 in adults with phenylketonuria has been placed on hold. clinically pending due to the need to modify risk mitigation measures in the study in response to observations of elevated liver function tests” and that “[t]The company expects to receive a formal clinical expectation letter within 30 days.”
On this news, Homology stock price fell $1.26 per share, or 32.64%, to close at $2.60 per share on February 22, 2022.
For more information on the Homology class action, please visit: https://bespc.com/cases/FIXX
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.