This Post Was Syndicated Under License Via QuoteMedia
NEW YORK, Dec. 04, 2019 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that class action lawsuits have been commenced on behalf of stockholders of The RealReal, Inc. (NASDAQ: REAL), Baxter International, Inc. (NYSE: BAX), and HEXO Corp. (NYSE: HEXO). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
The RealReal, Inc. (NASDAQ: REAL)
Class Period: Securities purchased pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s June 2019 initial public offering (“IPO” or the “Offering”).
Lead Plaintiff Deadline: January 24, 2020
On November 5, 2019, CNBC published an investigative report that showed that the Company’s authentication process was not as robust as it led consumers to believe. CNBC spoke with “nearly three dozen former employees and obtained internal company documents that show not everything is authenticated by an expert and employees work under strict quotas that lead to fakes being sold on the site.”
On this news, the Company’s share price fell $3.80 per share or over 19% over the next two trading days to close at $19.37 on November 6, 2019.
The complaint, filed on November 25, 2019, alleges that the Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) the Company’s employees received little training on how to spot fake items; (2) the Company’s strict quotas on its employees exacerbated product authentication issues; (3) consequently, the potential for counterfeit or mislabeled items to make it through Company’s authentication process was higher than disclosed; and (4) as a result, defendants’ statements about RealReal’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
For more information on the RealReal Class action go to: https://bespc.com/real
Baxter International, Inc. (NYSE: BAX)
Class Period: February 21, 2019 to October 23, 2019
Lead Plaintiff Deadline: January 24, 2020
On October 24, 2019, the Company disclosed an internal probe into its currency trading practices. According to news reports, Baxter engaged in certain intra-Company transactions undertaken for the purpose of generating foreign exchange gains or losses which were not booked in accordance with generally accepted accounting principles. These intra-Company transactions allegedly resulted in certain misstatements in the Company’s previously reported non-operating income related to net foreign exchange gains. The Company also reported that it has advised the Securities and Exchange Commission SEC of the internal investigation and advised investors that the Company does not expect to file its quarterly report on Form 10-Q for the period ended September 30, 2019 on a timely basis.
On this news, the price of Baxter common stock declined $8.87 per share, or 10.1%, from a close of $87.95 per share on October 23, 2019, to close at $79.08 per share on October 24, 2019.
The complaint, filed on November 25, 2109, alleges that throughout the Class Period, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts, about the company’s business and operations. Specifically, defendants misrepresented and/or failed to disclose that: (1) certain intra-Company transactions, undertaken for the purpose of generating foreign exchange gains and losses, used foreign exchange rate conventions that were not in accordance with GAAP and enabled intra-Company transactions to be undertaken after the related exchange rates were already known; (2) the Company lacked effective internal control over financial reporting; (3) as a result, the Company’s financial statements were misstated and would likely require correction or amendment; (4) due to the Company’s internal investigation, Baxter would not be able to file its quarterly report for the period ending September 30, 2019, with the SEC on Form 10-Q in a timely manner; and (5) as a result of the foregoing, defendants’ statements about the Company’s business and operations lacked a reasonable basis.
For more information on the Baxter International class action go to: https://bespc.com/bax
HEXO Corp. (NYSE: HEXO)
Class Period: January 25, 2019 to November 15, 2019
Lead Plaintiff Deadline: January 26, 2020
Through a series of disclosures occurring between October 4, 2019 and November 15, 2019, the Company announced that it was producing cannabis in a section of its Niagara facility that was not properly licensed with Health Canada. As a result of these disclosures, the value of HEXO stock has consistently decreased, damaging investors.
The complaint, filed on November 26, 2019, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that defendants failed to disclose to investors that: (1) HEXO’s reported inventory was misstated as the Company was failing to write down or write off obsolete product that no longer had value; (2) HEXO was engaging in channel-stuffing in order to inflate its revenue figures and meet or exceed revenue guidance provided to investors; (3) HEXO was cultivating cannabis at its facility in Niagara, Ontario that was not appropriately licensed by Health Canada; and (4) that, as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For more information on the HEXO class action go to: https://bespc.com/hexo
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.