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SAN FRANCISCO, CA / ACCESSWIRE / October 23, 2020 / Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases can be found at the links provided.
FULT Investors Click Here.
FIXX Investors Click Here.
Fulton Financial Corporation (FULT) Investigation:
Relevant Period: Apr. 18, 2017 - Sept. 29, 2020
Contact An Attorney Now: FULT@hbsslaw.com
The investigation centers on the propriety of Fulton's financial reporting, including accounting for its mortgage servicing rights ("MSR") assets and its MSR valuation allowance.
Each quarter in 2016 through mid-2017, Fulton's reported Earnings Per Share met or exceeded analyst consensus expectations. The Company claimed the success was "a clear reflection of our efforts to focus on organic growth and take advantage of the local market disruption."
But on Mar. 1, 2019, the Company revealed that the SEC had launched an investigation regarding certain accounting determinations that could have impacted the Corporation's reported earnings per share.
Then, on Sep. 28, 2020, the SEC filed a settled action against Fulton, finding that the Company inaccurately presented its financial performance in 2016 and early 2017. Specifically, during two quarters in which Fulton was on track to meet or beat analyst consensus EPS estimates, the SEC found that Fulton's public filings included a valuation allowance for its mortgage servicing rights that was at odds with the valuation methodology described in the same filings. Then, in mid-2017, Fulton belatedly reversed the valuation allowance, increasing its EPS by a penny in a quarter when it otherwise would have fallen short of consensus estimates. As a result of this fraudulent earnings smoothing, the SEC found that Fulton created the misleading appearance of consistent earnings across multiple reporting periods.
"We're focused on investors' losses and determining whether Fulton engaged in illegal earnings smoothing," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Fulton investor and have significant losses or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Homology Medicines, Inc. (FIXX) Investigation:
Relevant Period: Before July 21, 2020
Contact An Attorney Now: FIXX@hbsslaw.com
Homology Medicines is a Boston, MA-based gene therapy company focused on curing rare genetic diseases.
The investigation centers on the accuracy of Homology Medicines' statements concerning the efficacy of its first and lead product candidate, HMI-102, which purportedly treats a rare inherited disorder that causes an amino acid called phenylalanine (Phe) to build up in the body and lead to serious health problems.
In June 2019, Homology Medicines launched a dose-escalation Phase 1/2 clinical trial for HMI-102. Thereafter, Homology Medicines touted initial results, claiming the drug "reported encouraging safety and efficacy data from the dose-escalation portion of the trial," and that the data showed HMI-102 "produced a sustained reduction in phenylalanine (Phe)."
But on April 15, 2020, a key patient in the Phase 1/2 clinical trial shared test results on Facebook, suggesting that HMI-102 gene therapy is unlikely to be efficacious, even in high-dose patients. Although the posts were suspiciously taken down the same day, the Company's stock fell almost 25%.
Then, on July 21, 2020, Mariner Research published a scathing report, claiming Homology Medicines' recent comments about HMI-102's safety were misleading since they "conveniently ignor[ed] the implications to efficacy and the business." Piecing together disclosed data from a mouse study, the Phase 1/2 trial, and the patient's Facebook posts, Mariner Research concluded that HMI-102 "therapy is showing zero efficacy even for a high dose patient," signifying that "the HMI-102 program is dead in the water." Moreover, citing internal emails and analyst reports, Mariner Research claimed Homology Medicines had selectively discussed the patient's Facebook posts with sell-side analysts covering the Company and major investors, to the detriment of the Company's shareholder base.
Following Mariner's report, the price of Homology Medicines shares fell lower the next day.
"We're focused on investors' losses and whether Homology Medicines misled investors about the HMI-102 high dose data," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Homology Medicines investor and have significant losses or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Fulton and/or Homology Medicines should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FULT@hbsslaw.com and/or FIXX@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers, and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news, visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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