Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In ESS Tech To Contact Him Directly To Discuss Their Options
New York, New York–(Newsfile Corp. – January 28, 2023) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against ESS Tech Inc. (“ESS Tech” or the “Company”) (NYSE: GWH) and reminds investors of the March 13, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in ESS Tech stock or options between August 11, 2022 and December 7, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may alsoclick here for additional information: www.faruqilaw.com/GWH.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the purported agreement with Energy Storage Industries Asia Pacific (“ESI”) was in fact an undisclosed related party transaction because ESI was a de-facto subsidiary of ESS masquerading as third-party client; (2) ESS misled investors with their partnership announcement to signal business success to investors; and (3) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding ESS Tech’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
New York, New York–(Newsfile Corp. – January 28, 2023) – WHY: Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of the stock of Bioventus Inc. (NASDAQ: BVS): (i) pursuant and/or traceable to the offering documents issued in connection with the Company’s February 11, 2021 initial public offering (the “IPO” or “Offering”); and/or (ii) between February 11, 2021 and November 21, 2022, both dates inclusive (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than March 13, 2023.
SO WHAT: If you purchased Bioventus securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Bioventus class action, go to https://rosenlegal.com/submit-form/?case_id=10065 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.com or cases@rosenlegal.com for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than March 13, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources or any meaningful peer recognition. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, the Offering Documents and defendants statements throughout the Class Period were false and/or misleading and/or failed to disclose that: (1) Bioventus suffered from significant liquidity issues; (2) the Company’s rebate practices were unsustainable; (3) accordingly, defendants overstated the Company’s business and financial prospects; (4) Bioventus maintained deficient disclosure controls and procedures and internal control over financial reporting with respect to the timely recognition of quarterly rebates; (5) all the foregoing increased the risk that the Company would be forced to recognize a significant non-cash impairment charge, could not timely file one or more of its financial reports, would have to amend one or more of its financial statements, and could not meet its financial obligations as they came due; and (6) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein. When the true details entered the market, the lawsuit claims that investors suffered damages.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Shares of Redfin(RDFN 19.74%) jumped 17.8% this past week, according to data from S&P Global Market Intelligence, after CEO Glenn Kelman provided some encouraging commentary on the state of the housing market.
So what
After correctly warning last March that the residential real estate industry was peaking, Kelman explained in a series of tweets on Wednesday why the housing market appeared to be strengthening.
1 of 16: On 3.15.22, we said housing was “cresting,” and that it was “crazy for demand to be so strong in the midst of war, market volatility & inflation.” The market worsened each month through November. Now we believe the market, while still fragile, is recovering. Here’s why!
Kelman went on to state that several indicators of buyer demand — such as the number of people attending home tours, requesting meetings, and making offers — though still down from their pandemic highs, were improving significantly from their recent lows in November.
Kelman also noted that the real estate market is currently much healthier than it was during previous downturns, with inventory levels still low by historical standards, and with less than 2% of homeowners owing more money on their mortgages than their homes are worth. For context, more than 30% of homeowners were underwater on their mortgages during the housing crisis in 2008.
Moreover, Kelman said that Redfin’s agents were surprised by how quickly the market turned — so much so that they’re now encouraging their customers to move faster when making offers.
7 of 16: Their Redfin agent, Shoshana Godwin, said “some of us saw this coming, but we didn’t see how fast. We whiplashed 6 months ago, and now we’re whiplashing back. Last month, we were telling clients, ‘take your time.’ No more.”
“The market could still easily falter, Kelman said. “But housing in January has been stronger than anyone could’ve hoped.”
Now what
A continued recovery in the housing market would be a boon for Redfin. After shuttering its money-losing RedfinNow home-flipping business, the company is now squarely focused on its highly regarded real estate brokerage operations. A stronger housing market would likely mean more home sale transactions and a corresponding boost in profits for Redfin, as well as further gains for its shareholders.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Redfin. The Motley Fool recommends the following options: short February 2023 $7 calls on Redfin. The Motley Fool has a disclosure policy.
Amazon is taking yet another bold step into the world of healthcare, further solidifying its powerful footprint in the business-to-consumer “B2C” space. Earlier this week, the tech giant announced its new “RxPass” program, which is a $5 subscription plan that enables Amazon Prime members to get easy access to and free delivery for numerous medications.
Dr. Vin Gupta, Pulmonologist and Chief Medical Officer for Amazon Pharmacy, explains in his post: “Over the last decade as a practicing pulmonologist, I have seen patients with chronic diseases struggle to get access to the basic medications they need to live their lives well. Navigating insurance can be a maze and getting to the pharmacy a burden. Sometimes that has led to poor outcomes: New medications don’t get filled, refills don’t get picked up, and patients suffer. Aspects of our health care system make what should be easy, difficult. It’s why I feel so fortunate to be a part of the change that Amazon Pharmacy is helping to bring to this space.”
The post goes on to explain the details of the new initiative by Amazon: “RxPass [is] a new Prime membership benefit from Amazon Pharmacy that provides patients with affordable access to generic medications that treat more than 80 common health conditions for just $5 a month. With RxPass, Prime members can get as many eligible medications as they need for one flat, low fee of $5 and have them conveniently delivered free to their door.”
Indeed, the company is attempting to resolve a very real pain point. Millions of Americans (Amazon estimates nearly 150 million Americans) require the same medications that are available on RxPass. For many people, however, acquiring these medications is not an easy process. Often, it entails navigating a cumbersome process with insurance, filing claims, paying a co-pay, and actually having to go to the physical pharmacy to pick up the medication when it is ready. RxPass is effectively trying to remove a number of these barriers, especially by eliminating the insurance component in the process.
The platform even offers robust customer service: patients can call the support line, which can help directly coordinate with their physician’s office. If all goes seamlessly, patients can expect their medications to arrive at their doorstep.
There has been a significant amount of attention in the pharmacy space over the last decade, especially as the costs of prescription medications have skyrocketed, often being a prohibitive factor for people to receive the treatment they require.
Another notable venture in this space is being spearheaded by American entrepreneur, early tech investor, media personality, and owner of the Dallas Mavericks, Mark Cuban. Last year, Cuban announced a revolutionary initiative called the CostPlus Drug Company—a means to make medications more affordable and easier to acquire for Americans. He explains that “We started Mark Cuban Cost Plus Drug Company because every American should have access to safe, affordable medicines. If you don’t have insurance or have a high deductible plan, you know that even the most basic medications can cost a fortune. Many people are spending crazy amounts of money each month just to stay healthy. No American should have to suffer or worse – because they can’t afford basic prescription medications.”
“When you get your medicine from Cost Plus Drug Co., you’ll always know exactly how we arrived at the price you pay. And as we grow and our costs go down, we will always pass those savings on to you! We started this company as an effort to disrupt the drug industry and to do our best to end ridiculous drug prices.”
SANTA MONICA, CALIFORNIA – JUNE 24: Mark Cuban attends the 2019 NBA Awards at Barker Hangar. (Photo … [+] by Rich Fury/Getty Images)
Getty Images
At the core, Cuban and Amazon are tackling a very similar question: what is the most convenient and affordable way to increase people’s access to life-saving medications?
While both companies will undoubtedly face growing pains in the coming years by regulators, policy makers, healthcare providers, and patients themselves, one thing is certain: both companies hold incredible potential to help increase access to care for millions of people.
New York, New York–(Newsfile Corp. – January 28, 2023) – WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Gaia, Inc. (NASDAQ: GAIA) between December 27, 2017 and November 7, 2022, both dates inclusive (the “Class Period”), of the important February 21, 2023lead plaintiff deadline.
SO WHAT: If you purchased Gaia securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Gaia class action, go to https://rosenlegal.com/submit-form/?case_id=9917 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.com or cases@rosenlegal.com for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than February 21, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose, among other things, that: (1) the Company’s first quarter 2019 subscriber count was overstated; (2) the Company lacked adequate internal controls; (3) as a result, defendants had a heightened risk of regularly scrutiny and ultimately subject to an SEC investigation and action; and (4) as a result of the foregoing, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the truth emerged, the lawsuit claims that investors suffered damages.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm’s attorneys are ranked and recognized by numerous independent and respected sources. Rosen Law Firm has secured hundreds of millions of dollars for investors.
Attorney Advertising. Prior results do not guarantee a similar outcome.
F-star Therapeutics (NASDAQ:FSTX) is a microcap company with macrocap dreams and a takeover bid at $7.12 per share. The company currently trades at $5.86. The gap remains on concern that although the UK govt has approved the deal, the US CFIUS (the Committee on Foreign Investment in the United States) hasn’t approved it yet. This presents an opportunity if the deal closes; in my view, it also presents an opportunity if the deal does not close, because the company looks undervalued. The only risk is cash.
In order to improve their valuation in the event the deal does not close, this company needs to impress upon the market that their pipeline cannot be valued at a mere $100mn. In order for them to so impress the market, they need to produce convincing data from their assets. This is my first impression; now let’s dig in.
Here’s a look at their pipeline:
FSTX pipeline (FSTX website)
At first glance, this is an impressive pipeline. They have 4 clinical stage, self-owned assets, and what looks like four separate partnered programs, with big names like Merck KGaA, AstraZeneca, Janssen and Denali. They also state, in big, bold letters, that potential partnership value is over $2.2bn.
The company’s technology is immunotherapy-focused, using a bispecific antibody platform. These molecules are tetravalent, which the company claims will “drive strong dual immune activation capabilities.”
FSTX technology (FSTX website)
These monoclonal antibodies now bind to two separate and specific target antigens. As Fierce explains:
F-star’s Modular Antibody Technology makes bispecific antibodies by introducing a new antigen binding site to the constant (FC) region of an antibody. This binding site, dubbed an Fcab (Fc domain with antigen binding ability), in addition to the antibody’s own binding domain, allows it to bind to two different antigens.
Lead asset FS118 is a dual checkpoint inhibitor targeting PD-L1 and LAG-3. Its target indications are Head & Neck cancers, NSCLC and DLBCL. The second asset, FS120, is a first-in-class OX40/CD137 mAb² dual agonist bispecific antibody. FS122 is a CD137/PD-L1 mAb² bispecific antibody. SB 1125 is a second generation STING (Stimulator of Interferon Genes) agonist.
FS118 has gone through a phase 1 trial in heavily pretreated PD-1 resistant patients, where it “was well tolerated with no treatment-related serious adverse events and no dose-limiting toxicity, up to 20mg/kg.” According to the data here (see the January 2022 Presentation), disease control was observed in patients expressing PD-L1 and LAG-3 in the tumor microenvironment. In a patient with Anaplastic thyroid cancer, or ATC, with perithyroid metastasis, multiple lines of therapies were previously given. Concurrent chemo and radiation had progressive disease after 5 months. Anti-PD-L1 nivolumab was given, resulting in a 10 month duration of response. A Braf/Mek inhibitor was also given along with nivo, which resulted in severe toxicity with progressive disease after 4 months. Since February 2019, this patient has been on FS118 dosing (33 months), and “within a month the patient had rapid improvement in tumor size and was able to swallow.” This leads to the following development plan for FS118:
FS118 Development plan (FSTX website)
It now has a phase 2 proof of concept trial ongoing in HNC. The three other assets have phase 1 trials ongoing. Thus, as emerging biopharmas go, there is some semblance of reason in claiming that the data at hand may not justify the valuation in the market. We have seen worse, much worse.
Another angle to F-star’s investment case is their extensive patent estate. As the company says:
Our patent estate includes over 500 granted patents and pending patent applications generally directed to, for example, compositions and methods related to our Fcabs, our modular antibody technology platform, our lead mAb 2 product development candidates, our STING agonist SB 11285 and other STING agonist compounds, and other products, proprietary technologies and processes.
For lead asset FS118, they own or have licensed eight patent families, out of which they own ” two FS118-focused patent families which relate to the FS118 mAb 2 bispecific antibody composition of matter and the LAG-3 Fcab included in FS118.” Patent term goes to 2038. FS222 is covered by 7 patent families, and they ” own three patent families which relate to the composition of matter of the CD137 Fcab included in FS222, the PD-L1 antibody included in FS222 (acquired under agreement from Iontas), and the FS222 mAb 2 bispecific antibody.” The patent situation is similar for FS220, where they also own composition of matter patents. This means, these molecules were discovered by them, or they have critical IP coverage at the least. They also own patents covering their platform technologies, and more composition of matter patents covering their STING compound. I can see what might have attracted big pharma to this company. If their proof of concept trial works out, we will be seeing a lot more from these partnerships.
Now let’s explore these partnerships to see what, if anything, big pharma sees in FSTX, or are they proforma deals.
Denali (DNLI) first partnered with F-star for their F-star Gamma unit in 2016, with an option to acquire this unit, which was exercised in 2016, in a deal “potentially worth $471 million, picking up the rights to antibodies developed under their collaboration.” About this collaboration, Denali CEO Ryan Watts, Ph.D., said:
Our decision to exercise the option to buy F-star Gamma reflects the progress in our collaboration with F-star and the generation of preclinical data showing that our proprietary TV platform technology may enable us to deliver biologics across the BBB and into the brain. Specifically, recent data demonstrated robust and sustained peripheral and brain activity for our ETV:IDS program for Hunter Syndrome and hence preclinical proof of concept. Furthermore, the expanded collaboration allows us to deepen and broaden our research efforts supporting our TV platform technology
Denali actually had more time to close the option, but they “ramped up” the timeline after seeing something they liked. This was no proforma deal.
The company has a small, ~$13mn+royalties deal with Kymab in 2016 for certain of their patents. Kymab was acquired by Sanofi in 2021.
In 2019, the company entered into a licensing agreement “to develop, manufacture and commercialize two separate mAb 2 antibody products that each contain a specific Fcab and a Fab target pair (each a licensed product)” with Ares, a subsidiary of Merck KGaA (OTCPK:MKGAF) of Dermstadt, Germany. The deal is potentially worth some $750mn. Last year, Merck exercised its fourth program option as part of the deal, and produced data from a partnered compound at SITC.
F-star had an agreement with AstraZeneca (AZN) in 2021 whereby they granted global rights to their STING compound to AZN. The deal was worth a small $12mn upfront payment, $300mn in milestone payments, and single digit royalties.
In the same year, the company got into another agreement with Janssen (JNJ) and gave them a “worldwide exclusive license to research, develop and the option to commercialize up to five novel bispecific antibodies directed to Janssen therapeutic targets using our proprietary Fcab and mAb2 platforms.” The deal involved $17.5mn in upfront payments, $1.35bn in milestones, and mid single digit royalties.
Thus, these are not proforma deals at all. These are serious deals, and as is usual with early stage but promising companies without POC, the upfront payments are small, but the milestone payments are large. Some of these companies have even paid development costs for the compounds they acquired rights to, on a retrospective basis. This is not something I have come across often. This, again, goes to show that the POC trial of FS118 carries a lot of weight, and given the early data we have seen, the company looks undervalued.
Here, I am going to abandon standard practice and not discuss market potential of the targeted indications because at this stage of development, there’s not enough selection for most target indications. Three things seem important here – early data, which they have; patents, which they also have; and these potentially major deals with big pharma. This company must be valued on these bases, and I don’t think their current valuation justifies their potential.
The takeover bid
F-star was offered a takeover bid by invoX Pharma – wholly owned by Sino Biopharmaceutical (OTCPK:SBMFF) (OTCPK:SBHMY), in June 2022, for $7.12 per share in an all-cash transaction. A November article on Seeking Alpha discusses the details here. Since November, though, CFIUS has still delayed the process. Sino Biopharma is a $11.4bn market cap , OTC traded major Chinese firm. The author I cited says that the reason for the delay could be “foreign access to sensitive U.S. patient data, continued U.S. access to the company’s R&D output, or something else.” The author speculates that presence of Chinese government elements on Sino’s board may be a deterrent for CFIUS, while the origin and control of the company in Thailand may be a mitigant.
In late December, the CFIUS issued an interim order blocking the planned sale. They also threatened “to take action if the companies close the deal without resolving outstanding national security risks.” FSTX dropped 40%, and then went back up 40% the next day after the two companies announced that they decided to extend their agreement deadline to January 31, 2023 from Jan 17.
CFIUS has confirmed to the Parties that it has determined that mitigation measures would be available and in discussions with the Parties indicated a draft National Security Agreement setting forth such mitigation measure would be sent to the Parties.
With regard to further extensions and F-star’s need for cash, here’s what Sino Bio said:
“We are seeking to move swiftly to ensure F-star has the financing it needs to maintain potentially lifesaving work on cancer clinical trials, while avoiding extensive layoffs,” invoX said in a statement. “Through our engagement with CFIUS staff, we understand that the Committee has determined that any national security concerns can be mitigated and will work expeditiously to reach a resolution.”
This may actually mean that if there are further extensions but with a positive tone from CFIUS, Sino Bio may extend that $12mn FSTX was supposed to receive if the acquirer walked away due to CFIUS delays.
Financials
FSTX has a market cap of $128mn and a cash balance of $35mn. Last quarter, they spent around $10mn in R&D and $5mn in G&A, and last year they spent some $40mn. So the cash runway is short, which is one reason why the acquisition bid looks like a godsend, and its denial looks like a despairing event. However, as I have tried to argue, the deal may look good in the short term, but in the long term, it may actually be devaluing FSTX.
Bottom line
In less than a week, we will probably know whether the two companies will extend the agreement further. It seems likely that they will, given the CFIUS lifeline of mitigation measures and a draft National Security Agreement setting forth such mitigation measure. That the UK has agreed to the merger – the UK broadly follows US government trends, politically speaking – is also indicative of a process that may be drawn out, but could end positively. If it does, the stock will go up some 30%.
If it doesn’t, the stock will fall drastically. However, there’s a backup plan at work here in the extensive patent estate and the likelihood of positive FS118 data if the company survives. This presents a risky opportunity.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
New York, New York–(Newsfile Corp. – January 28, 2023) – WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of International Business Machines Corporation (NYSE: IBM) between January 18, 2018 and October 16, 2018, both dates inclusive (the “Class Period”) of the important March 14, 2023 lead plaintiff deadline.
SO WHAT: If you invested in IBM securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the IBM class action, go to https://rosenlegal.com/submit-form/?case_id=5104 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.com or cases@rosenlegal.com for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than March 14, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Strategic Imperatives Revenue growth, CAMSS (the distinct components of “Cloud,” “Analytics,” “Mobile,” “Security,” and “Social”) and CAMSS components’ revenue growth, and the Company’s Segments’ revenue growth were artificially inflated as a result of the wrongful reclassification/misclassification of revenues from non-strategic to strategic to make those revenues eligible for treatment as Strategic Imperatives Revenue; and (2) IBM was materially less successful in growing its Strategic Imperative business, reporting materially higher growth than it actually achieved only by wrongfully reclassifying and misclassifying revenue from non-strategic to strategic thereby reporting publicly materially false Strategic Imperative Revenue. When the true details entered the market, the lawsuit claims that investors suffered damages.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Shares of Lucid Group (NASDAQ: LCID) rocketed up by almost 100% in one day on speculation it would be taken over. The rumor centers on Saudi Arabia’s Public Investment Fund, which owns more than 60% of the company. According to reports, the fund is working with a major bank, possibly JPMorgan, on a deal for the cash.
This is on top of growing speculation the fund, which has been very supportive of its investments in the past, would take on a more substantial role, and it looks like that is a real possibility. The stock was halted numerous times due to the sharp spike in volatility which is the only thing we can be certain of.
The EV market, and the start-up EV market, in particular, has been in the crosshairs of the bears and short-sellers for many quarters. The amount of cash it takes to get an EV to market, the hurdles to production and the mounting competition from industry leaders like Tesla have the scales tilted against their success and the short sellers selling en masse.
The short interest in Lucid Motors was running over 25% ahead of this latest rumor and sparked a massive surge in volume. Mind you that is the official short interest because Fintel.io is listing the off-exchange short interest at over 55%. The takeaway here is that Lucid motors are set up for a short squeeze, and others like it, and all it takes is the right news to set it off.
Mullen Automotive is also running a high short interest. Its official figure is nearly 12% which is far less than Lucid, and Lucid is producing cars. However, the off-exchange short interest in Mullen, which includes dark pool activity and high-frequency trading volume, is running closer to 50%, and there are potential catalysts here as well.
Mullen just approved several shareholder measures that should help it raise capital in the near term and get its production and share price above $1 before the NASDAQ deadline in March.
While sales of shares will dilute shareholder value, the capital raised will help start production while investors wait for the first revenue from I-Go sales to come in from Europe.
The Analysts Sentiment Was Slipping ….
The analysts are rating Lucid at a firm Hold with a price target that is still more than 30% above its price action (with prices near $12). However, the sentiment had been slipping, so there could be a change in the winds and this rumor to drive the stock. With production on the rise, the company could see the analyst’s sentiment bottom and shift toward the upside.
Citigroup is among the more bullish analysts and recently reiterated its buy rating. Their analyst Itay Michaeli says they “like the company’s technology and product positioning in the EV race, (the) key focus areas now include the continued production ramp of the Air, upcoming reservation/demand updates, the company’s go-forward pricing strategy, 2023 gross margin outlook and Gravity launch milestones.”
The Technical Outlook: Lucid Rocks Higher, Gains Capped
Shares of Lucid rocketed higher on the rumor but the gains were capped and trimmed in the wake. The price action is now consolidating near a key resistance target and may remain at this level until more news emerges. If Saudi Arabia’s Public Investment Fund does make an offer, it could be off to the races once more. If not, expect to see the short interest get even larger.
Before you consider Lucid Group, you’ll want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Lucid Group wasn’t on the list.
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SAN DIEGO, Jan. 28, 2023 /PRNewswire/ — Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Fate Therapeutics, Inc. (NASDAQ: FATE) securities between April 2, 2020 and January 5, 2023, both dates inclusive (the “Class Period”) have until March 22, 2023 to seek appointment as lead plaintiff in the Fate Therapeutics class action lawsuit. Captioned Hadian v. Fate Therapeutics, Inc., No. 23-cv-00111 (S.D. Cal.), the Fate Therapeutics class action lawsuit charges Fate Therapeutics and certain of its top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Fate Therapeutics class action lawsuit, please provide your information here:
You can also contact attorney J.C. Sanchezof Robbins Geller by calling 800/449-4900 or via e-mail at [email protected].
CASE ALLEGATIONS: Fate Therapeutics is a clinical-stage biopharmaceutical company that develops programmed cellular immunotherapies to treat cancer and immune disorders. On April 2, 2020, Fate Therapeutics announced a collaboration agreement with Janssen Biotech, Inc. (the “Janssen Collaboration Agreement”), under which Fate Therapeutics received a $50 million payment and was eligible for future payments that totaled in the billions of dollars.
The Fate Therapeutics class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) the Janssen Collaboration Agreement was less sustainable than Fate Therapeutics had represented to investors; (ii) accordingly, certain of the clinical programs, milestone payments, and royalty payments associated with the Janssen Collaboration Agreement could not be relied upon as future revenue sources; and (iii) as a result, Fate Therapeutics had overstated the impact of the Janssen Collaboration Agreement on its long-term clinical and commercial profitability.
On January 5, 2023, Fate Therapeutics announced that it had terminated the Janssen Collaboration Agreement. Specifically, Fate Therapeutics disclosed that it was “not able to align with Janssen on their proposal for continuation of our collaboration, where two product candidates targeting high-value, clinically-validated hematology antigens were set to enter clinical development in 2023.” As a result of the termination, Fate Therapeutics revealed that all licenses and other rights granted pursuant to the Janssen Collaboration Agreement would terminate, that it would reduce its headcount in 2023, and that it would discontinue several of its natural cell killer programs in various cancers. On this news, Fate Therapeutics’ stock price declined more than 61%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Fate Therapeutics securities during the Class Period to seek appointment as lead plaintiff in the Fate Therapeutics class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Fate Therapeutics class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Fate Therapeutics class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Fate Therapeutics class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors in 2021 – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
Shares of Phathom Pharmaceuticals(PHAT 6.74%) were up 44.6% this past week, according to data provided by S&P Global Market Intelligence. The stock closed last Friday at $8.61, then closed at $12.36 on Friday. Despite the rise, the stock is down nearly 40% from its 52-week high of $19.95.
So what
Phathom is a clinical-stage biotech company that specializes in treating gastrointestinal tract disorders. In 2019, it was spun off from Takeda Pharmaceuticals and Frazier Healthcare.
Its lead therapy is Vonoprazan, a potassium-competitive acid blocker. The drug’s possible approval by the Food and Drug Administration (FDA) as a treatment for erosive esophagitis has been pushed back because the regulator had concerns about trace levels of nitrosamine impurities in the drug, the company said on Jan. 3.
A few days later, Phathom announced positive Phase 3 trial information regarding the drug as a treatment for symptomatic non-erosive gastroesophageal reflux disease (NERD). Its the third positive Phase 3 trial for Vonoprazan, all on different indications. The company had hoped to launch the drug in the U.S. market this quarter, and if the company can solve its safety issues regarding the drug, it has the chance to be a blockbuster.
Now what
Investors are reading between the lines to see if perhaps the company is close to fixing its problems regarding Vonoprazan. It’s a risky stock at this point. The company reported a loss of $51.1 million in the third quarter up from $36.7 million in the same period last year. Phathom’s management has said that it has enough cash on hand to last it through 2024.
Jim Halley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
