NEW YORK, Dec. 11, 2019 /PRNewswire/ -- 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 Baxter International, Inc. (NYSE: BAX), HEXO Corp. (NYSE: HEXO), Prudential Financial, Inc. (NYSE: PRU), and Fiat Chrysler Automobiles N.V. (NYSE: FCAU). 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.
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 ("GAAP"). 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, 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 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
Prudential Financial, Inc. (NYSE: PRU)
Class Period: February 15, 2019 to August 1, 2019
Lead Plaintiff Deadline: January 27, 2020
On July 31, 2019, the Company announced disappointing second quarter 2019 financial results and disclosed that the Company would take a pre-tax charge of $208 million as a result of its market experience update. In the earnings release, Prudential's CEO acknowledged that changes in "mortality assumptions" had negatively impacted the Company's results and would "trim" near-term momentum.
On August 1, 2019, the Company held a conference call to discuss its second quarter 2019 financial results. On the call, defendants revealed that the change in mortality assumptions would require a negative earnings impact of $25 million per quarter for the foreseeable future, wiping out approximately one third of the earnings attributable to the Individual Life business segment.
On this news, Prudential's stock price declined more than 10%, to close at $91.09 per share on August 1, 2019.
Then on August 2, 2019, Prudential filed its quarterly report on Form 10-Q with the SEC for the second quarter of 2019, which provided additional information concerning the Company's adjustments to operating income by segment, including that the $208 million pre-tax charge to reserves was entirely attributable to the Individual Life business segment.
On this news, Prudential's stock price declined another 5.6%, falling to $88.56 per share on August 2, 2019 and to $85.95 per share on August 5, 2019.
The complaint, filed on November 27, 2019, alleges that during the Class Period defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Prudential's business and prospects. Specifically, defendants failed to disclose the following facts: (a) the Company's reserve assumptions failed to account for adversely developing mortality experience in its Individual Life business segment; (b) the Company was not over-reserved, but instead, its reported reserves, particularly for the Individual Life business segment, were insufficient to satisfy its future policy benefits liabilities; and (c) the Company had materially understated its liabilities and overstated net income as a result of flawed assumptions in calculating mortality experience. As a result of this adverse information being withheld from the market, the price of Prudential common stock was artificially inflated to more than $105 per share during the Class Period.
To learn more about the Prudential Financial class action go to: https://bespc.com/pru
Fiat Chrysler Automobiles N.V. (NYSE: FCAU)
Class Period: February 26, 2019 to November 20, 2019
Lead Plaintiff Deadline: January 31, 2020
On November 20, 2019, General Motors Company ("GM") filed a federal racketeering lawsuit against Fiat Chrysler and its former executives, accusing Fiat Chrysler of bribing United Auto Workers officials to receive more favorable terms in labor negotiations. Specifically, GM alleged that Fiat Chrysler "corrupted" collective bargaining agreements between GM and UAW in 2009, 2011, and 2015 by paying millions in dollars in bribes, and that the alleged scheme was authorized at the highest levels of Fiat Chrysler, including the Company's late Chief Executive Officer Sergio Marchionne.
On this news, Fiat Chrysler's stock price fell $0.58 per share, or 3.72%, to close at $15.00 per share on November 20, 2019.
The complaint, filed on December 2, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Fiat employed a bribery scheme to obtain favorable terms in its collective bargaining agreement with International Union, United Automobile, Aerospace and Agricultural Implement Workers of America; (2) high-ranking Fiat official were aware of and authorized the scheme; and (3) due to the foregoing, defendants' statements about Fiat's receivables, 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 Fiat Chrysler class action go to: https://bespc.com/fcau
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.
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