NEW YORK, Nov. 06, 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 Sundial Growers, Inc. (NASDAQ:SNDL), electroCore, Inc. (ECOR), Tencent Music Entertainment Group (TME), and Myriad Genetics, Inc. (MYGN). 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.
Sundial Growers, Inc. (NASDAQ:SNDL)
Class Period: Securities purchased pursuant to and/or traceable to the company’s August 1, 2019 initial public offering (“IPO”).
Lead plaintiff deadline: November 25, 2019
On August 1, 2019, Sundial closed its initial public offering (“IPO”), in which it sold 11 million shares at $13.00 per share, yielding $143 million in proceeds. In the Registration Statement for the IPO, the company stated that it produces “high-quality, consistent cannabis.”
On August 14, 2019, cannabis producer Zenabis Global Inc. (“Zenabis”) revealed that “[c]ertain third-party producers failed to supply saleable cannabis in line with contractual obligations. Due to quality issues, Zenabis had to return or reject a total of 554 kg of cannabis from a third-party.”
On August 19, 2019, MarketWatch published an article stating that Sundial had sold the cannabis to Zenabis. The article also stated that the cannabis was returned “because it contained visible mold, parts of rubber gloves and other non-cannabis material, according to people familiar with the matter.”
On this same day, the company confirmed that it was resolving an “isolated immaterial matter between Sundial and [a] Licensed Producer.”
The complaint, filed on September 25, 2019, alleges that in the IPO and afterwards defendants made false and/or misleading statements and/or failed to disclose that: (1) Sundial failed to supply saleable cannabis in line with contractual obligations to Zenabis Global Inc.; (2) due to material quality issues, Zenabis had to return or reject a total of 554 kg of cannabis to Sundial, valued at approximately U.S. $1.9 million (C$2.5 million); and (3) as a result, defendants’ statements about Sundial’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Sundial’s stock is currently trading at $4.66 per share, a 64% decrease from the $13.00 IPO price.
For more information on the Sundial class action, go to: https://bespc.com/sndl
electroCore, Inc. (ECOR)
Class Period: Securities purchased between June 22, 2018 and September 25, 2019 (“the “Class Period”) and/or pursuant or traceable the company’s June 2018 initial public offering (“IPO”).
Lead Plaintiff Deadline: November 25, 2019
In June of 2018, electroCore completed its initial public offering (“IPO”) in which it sold 5.2 million shares at $15.00 per share. On May 14, 2019, the company announced that its first quarter 2019 financial results fell short of investors’ expectations, reporting $410,000 in net sales and an operating loss of $14.2 million.
On this news, the company’s share price fell $1.58, or nearly 29%, to close at $3.75 per share on May 15, 2019.
Then, on September 25, 2019, the company revealed that the U.S. Food and Drug Administration requested more information and analysis of clinical data for electroCore’s 510(k) submission, which seeks an expanded indication for the use of gammaCore, the Company’s treatment for pain associated with episodic cluster headache.
On this news, the company’s share price fell $0.79, or over 23%, to close at $2.57 per share on September 25, 2019.
By market close on September 26, 2019, electroCore stock was trading as low as $2.48 per share, an 83% decline from the $15 per share IPO price.
The complaint, filed on September 26, 2019 alleges that throughout the class period and following the IPO 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, defendants failed to disclose to investors: (1) that the company’s lead product, gammaCore, did not enjoy any advantages over other acute treatments for migraines and episodic cluster headaches; (2) that, as a result, doctors and patients were unlikely to adopt gammaCore over existing treatments; (3) that the company’s voucher program was not effective to increase adoption of gammaCore; (4) that the company lacked sufficient resources to successfully commercialize gammaCore; (5) that the company’s business plan and strategy was not sustainable because electroCore lacked sufficient revenue to be profitable; (6) that the company’s product registry and efforts were ineffective to initiate reimbursement policies by commercial payors for gammaCore; (7) that the lack of reimbursement would materially impact adoption and sales of gammaCore; (8) that the company lacked sufficient clinical data demonstrating that gammaCore was effective and safe for migraine prevention; (9) that, as a result, the company’s 510(k) submission for the use of gammaCore for migraine prevention was unlikely to be approved by the FDA; and (10) 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 electroCore class action go to: https://bespc.com/ecor
Tencent Music Entertainment Group (TME)
Class Period: December 12, 2018 to August 26, 2019
Lead Plaintiff Deadline: November 25, 2019
On August 27, 2019, Bloomberg reported that the State Administration of Market Regulation, China’s antitrust authority, was investigating exclusive licensing deals between Tencent Music and major record labels including Universal Music Group, Sony Music Entertainment, and Warner Music Group.
On this news, Tencent Music’s American depositary share price fell $0.92 per share, or 6.83%, to close at $12.57 per share on August 27, 2019.
The complaint, filed on September 26, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Tencent Music’s exclusive licensing arrangements with major record labels were anticompetitive; (2) consequently, sublicensing such content from Tencent Music was unreasonably expensive, in violation of Chinese antimonopoly laws; (3) these anticompetitive efforts were reasonably likely to lead to regulatory scrutiny; and (4) 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.
For more information on the Tencent class action go to: https://bespc.com/tme.
Myriad Genetics, Inc. (MYGN)
Class Period: September 2, 2019 to August 13, 2019
Lead Plaintiff Deadline: November 26, 2019
On September 1, 2016, Myriad announced the completion of its acquisition of Assurex Health, Inc. (“Assurex”). Myriad also acquired GeneSight through this acquisition.
On July 31, 2018, Myriad announced that it had closed its acquisition of Counsyl, Inc. (“Counsyl”). This acquisition provided Myriad with two new products—ForeSight and Prelude—in the expanded carrier screening and non-invasive prenatal testing markets, respectively. The company estimated that these markets would grow to approximately three million tests performed in the U.S. and $1.5 billion over the next five years.
The complaint, filed on September 27, 2019, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) GeneSight lacked evidence or information sufficient to support the tests in their current form, including their purported benefits; (ii) the U.S. Food and Drug Administration (“FDA”) had requested changes to GeneSight and questioned the validity of the test’s purported benefits; (iii) Myriad had been in ongoing discussions with the FDA regarding the FDA’s requested changes to GeneSight; (iv) Myriad’s acquisition of Counsyl—and thereby, Foresight—caused the company to incur the risk of suffering from lower reimbursement for its expanded carrier screening tests, which had the potential to, and actually did, materialize into a material negative impact on the company’s revenue; and (v) as a result, the company’s public statements were materially false and misleading at all relevant times.
On August 13, 2019 Myriad issued an earnings release, wherein the company reported its fiscal fourth quarter and full year 2019 financial results. In this release, it was disclosed that “[u]nfortunately, revenue in the fourth quarter was two percent below expectations largely due to lower reimbursement for [the Company’s] expanded carrier screening test”—i.e., Foresight.
Later that day, in an earnings conference call with investors and analysts, it was revealed that “the FDA requested changes to the GeneSight test offering” after Myriad had provided the FDA with clinical evidence and other information to support GeneSight Psychotropic, and that the company has “been in ongoing discussions with the FDA regarding its request.”
Also later that day, Myriad filed an Annual Report on Form 10-K with the SEC, reporting the Company’s financial and operating results for the fiscal year ended June 30, 2019 (the “2019 10-K”). In the 2019 10-K, Defendants disclosed that the FDA had questioned whether the validity of GeneSight’s purported benefits had been established. The 2019 10-K also revealed that, since at least late 2018, the FDA had repeatedly questioned the claims of marketed genetics tests, such as GeneSight.
On this news, Myriad’s stock price fell $19.05 per share, or 42.76% to close at $25.50 per share on August 14, 2019.
For more information on the Myriad Genetics class action go to: https://bespc.com/MYGN
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.