NEW YORK, Oct. 22, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, is investigating potential claims against HEXO Corp. (HEXO), Pareteum Corporation (TEUM), Qiagen N.V. (QGEN), and Zendesk, Inc. (ZEN) on behalf of investors. Our investigation concerns whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
HEXO Corp. (HEXO)
On October 4, 2019, HEXO announced the immediate resignation of its Chief Financial Officer Michael Monahan, after only four months as the Company’s CFO.
On this news, HEXO’s stock price fell $0.26 per share, or 6.4%, to close at $3.80 per share on October 7, 2019.
Then, on October 10, 2019, HEXO released preliminary revenue results for the fourth quarter of fiscal year 2019 that were nearly 50% lower than previous guidance and withdrew previously announced fiscal year 2020 guidance of up to $400 million in revenue. HEXO’s Chief Executive Officer Sebastien St-Louis attributed these poor results to “lower than expected product sell through” and admitted that the company would have to make “significant changes to our sales and operations strategy to drive future results.”
On this news, HEXO’s stock price fell $0.83 per share, or 22.55%, to close at $2.85 per share on October 10, 2019.
For more information on our investigation into HEXO go to: https://bespc.com/HEXO
Pareteum Corporation (TEUM)
On June 7, 2019, Marcus Aurelius Value published a report questioning the credibility of Pareteum's accounting, its statements about its backlog, its backlog conversion rates, and its receivables. The report concluded, "[w]e see massive downside potential and believe the stock is completely uninvestible."
Then, on June 25, 2019, Viceroy Research Group published a report identifying several sources of "uncollectable" revenue in Pareteum's financial results, concluding that "total revenue is overstated by 42%."
Then, on August 26, 2019, Pareteum announced that as a condition of obtaining $2.5 million in financing, the company was forced to issue 750,000 shares to its senior secured creditor, thereby diluting the value of Pareteum’s shares for existing shareholders.
On October 15, 2019, the company announced the termination of Pareteum's Chief Operating Officer Denis McCarthy, who allegedly played a central role in spreading the Company's 36-Month-Contract-Backlog, the metric under intense scrutiny.
On October 21, 2019, the company announced that it will restate its issued consolidated financial statements as of and for the full year ended December 31, 2018, and interim periods ended March 31, 2019 and June 30, 2019.
As a result of these disclosures, the value of Pareteum stock has consistently decreased, closing at $0.73 per share on October 21, 2019.
For more information on our investigation into Pareteum go to: https://bespc.com/teum
Qiagen N.V. (QGEN)
On October 7, 2019, Qiagen announced third quarter results would come in below previous estimates. On this same day, Qiagen also announced its long-term CEO, Peer M. Schatz, who served the Company for 27-years, would resign as CEO and Chairman of the Board effective immediately.
On this news, Qiagen’s stock price declined over 20% on October 8, 2019, from $32.06 per share to $25.41 per share.
For more information on our investigation into Qiagen go to: https://bespc.com/qgen
Zendesk, Inc. (ZEN)
On October 2, 2019, Zendesk disclosed that on September 24, 2019, the company identified a data breach that occurred prior to November 2016, in which an unauthorized third party accessed the personal information of approximately 10,000 users with registered Zendesk Support and Chat accounts.
On this news, Zendesk’s stock price fell $2.91 per share, or approximately 4%, to close at $69.81 per share.
For more information on our investigation into Zendesk go to: https://bespc.com/Zen
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.