SAN FRANCISCO, Oct. 12, 2020 (GLOBE NEWSWIRE) -- 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, including upcoming application deadlines, can be found at the links provided.
Hagens Berman’s Tactile Securities Litigation:
Throughout the Class Period, Defendants allegedly misrepresented and concealed that: (1) while Tactile publicly touted a $4 plus billion or $5 plus billion market opportunity, in truth, the total addressable market for Tactile’s medical devices was materially smaller; (2) to induce sales growth and share gains, Tactile engaged in illegal sales and marketing activities; and (3) Tactile’s revenues were in part the product of unlawful conduct and thus unsustainable.
The truth began to emerge on Mar. 20, 2019, when an amended federal Qui Tam complaint filed against Tactile was unsealed, which contained detailed allegations of illegal sales practices on the part of Tactile, causing the Company to submit fraudulent claims to Medicare and the VA.
Then, on Feb. 21, 2020, the court issued an order in the Qui Tam Action, denying Tactile’s motion to dismiss in its entirety.
Finally, on June 8, 2020, research firm OSS Research published a scathing report about the Company, accusing Tactile of using a “‘daisy-chaining’ kickback scheme that has resulted in rampant overprescribing and rapid market share gains at the expense of patients, insurers and the public.”
All told, these disclosures caused Tactile securities to decline precipitously, wiping out significant shareholder value.
If you are a TCMD investor, click here to discuss your legal rights with Hagens Berman. A copy of the Complaint can be obtained here.
“We’re focused on investors’ losses and proving Tactile deceived investors by engaging in illegal marketing schemes to induce sales growth,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Hagens Berman’s VXRT Securities Class Action:
The class action, filed in the United States District Court for the Northern District of California, and captioned Himmelberg v. Vaxart, Inc., et al., Case No. 3:20-cv-05949-VC, is brought on behalf of all investors who purchased or otherwise acquired VXRT securities during the Class Period – between June 25, 2020 and July 25, 2020, inclusive. The case seeks to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased VXRT shares during the class period, you have until Oct. 23, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained here. Click here to discuss your legal rights with Hagens Berman.
Vaxart is a clinical-stage Company purportedly engaged in the discovery and development of vaccines for a variety of diseases that would be administered orally, rather than by injection.
The class action arises from Defendants’ alleged fraudulent scheme to profit from artificially inflating the Company’s stock price by announcing false and misleading information concerning Vaxart’s oral COVID-19 vaccine candidate.
Specifically, the Complaint alleges that on June 26, 2020, Vaxart issued a press release entitled, “Vaxart’s COVID-19 Vaccine Selected for the U.S. Government’s Operation Warp Speed,” falsely claiming its vaccine had been selected to participate in a non-human challenge study, organized and funded by OWS. This announcement sent the price of Vaxart shares rocketing higher.
In furtherance of the scheme, Defendants amended controlling shareholder Armistice’s existing warrant agreements, allowing Armistice to exercise all of its warrants immediately and sell 27.6 million Vaxart shares, reaping profits of approximately $200 million. Defendants also issued millions of dollars in favorable stock options to Vaxart’s most senior executives.
The Complaint alleges that on July 25, 2020, details emerged revealing Defendants’ deception concerning their alleged pump and dump scheme. In particular, on July 25, 2020, The New York Times published an article entitled, “Corporate Insiders Pocket $1 Billion in Rush for Coronavirus Vaccine,” covering suspiciously timed stock bets that had generated significant profits for senior executives and board members at companies developing vaccines and treatments. Vaxart was featured prominently in the article, and it clarified “Vaxart is not among the companies selected to receive significant financial support from Warp Speed.” In response to this news, the price of Vaxart shares dropped sharply lower on July 27, 2020 from $12.29 to $11.16.
“We’re focused on investors’ losses and proving Vaxart misled investors about OWS’s potential funding support for the Company,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Tactile and/or Vaxart 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 TCMD@hbsslaw.com and/or VXRT@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