Bragar Eagel & Squire, P.C. Business News| Business News
NEW YORK, March 06, 2023 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Global Payments, Inc. (NYSE: GPN), Caribou Biosciences, Inc. (NASDAQ: CRBU), Inspirato Incorporated (NASDAQ: ISPO), and Kornit Digital Ltd. (NASDAQ: KRNT). Stockholders can petition the court to be the lead plaintiff until the deadlines. You can find additional information on each case at the provided link.
Global Payments, Inc.
Class Period: October 31, 2019 – October 18, 2022
Deadline for Lead Plaintiff: April 9, 2023
Global Payments, a Georgia company, is headquartered in Atlanta. Global Payments is a global payments technology company that provides innovative software and services to financial institutions worldwide. Global Payments is a Fortune 500 company and is a member of the S&P 500. One of Global Payments’ wholly owned subsidiaries is Active Network, which provides third-party registration and payment processing services to consumers signing up to participate in events. 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: (a) Active Network used deceptive and abusive acts and practices to dupe its customers into enrolling into Active Network’s own discount club; (b) since July 2011, Active Network, and by extension, Global Payments, was aware of such unauthorized conduct and that it was violating relevant regulations and laws aimed at protecting its consumers; (c) since 2011, Global Payments failed to properly monitor its subsidiary from engaging in such unlawful conduct, detect and stop the misconduct, and identify and remediate harmed consumers; (d) all the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny or investigation; (e) Global Payments’ revenues were in part the product of Active Network’s unlawful conduct and thus unsustainable; and (f) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On October 18, 2022, the truth about Global Payments’ practices was disclosed when the Consumer Financial Protection Bureau (“CFPB”) issued a Complaint against Active Network for illegally cramming consumers with membership fees.
On this news, the price of Global Payments’ stock fell precipitously and closed at $113.67 on October 18, 2022.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.
For more information on the Global Payments class action go to: https://bespc.com/cases/GPN
Caribou Biosciences, Inc. (NASDAQ: CRBU)
Class Period: Pursuant to and/or traceable the November 20, 2020 IPO; Pursuant to and/or traceable the March 18, 2021 SP; November 20, 2020 – September 19, 2022
Deadline for Lead Plaintiff: April 11, 2023
Caribou, a biopharmaceutical firm in clinical-stage development, focuses on the development of allogeneic cell therapies that are genome-edited to treat solid tumors and hematologic malignancies in the U.S. The Company is developing, among other product candidates, CB-010, an allogeneic anti-CD19 CAR-T cell therapy1 that is in a Phase 1 clinical trial, referred to as “ANTLER”, to treat relapsed or refractory B cell non-Hodgkin lymphoma (“r/r B-NHL”).
According to Defendants, CB-010 is the first clinical-stage allogeneic anti-CD19 CAR-T cell therapy with programmed cell death protein 1 (“PD-1”) removed from the CAR-T cell surface by a genome-edited knockout of the PDCD1 gene, which purportedly sets CB-010 apart from other allogeneic CAR-T cells by, inter alia, improving the “persistence” of antitumor activity.
On July 1, 2021, Caribou filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, after several amendments, was declared effective by the SEC on July 22, 2021 (the “Registration Statement”).
On July 23, 2021, pursuant to the Registration Statement, Caribou’s common stock began publicly trading on the Nasdaq Global Select Market (“NASDAQ”) under the ticker symbol “CRBU”. That same day, Caribou filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and, collectively with the Registration Statement, the “Offering Documents”).
Caribou issued 19 Million shares of common stock pursuant to the Offering Documents at the Offering Price of $16.00 each share for proceeds totaling $282.72million to the Company, net of expenses and applicable underwriting discounts.
The Offering Documents were prepared negligently and contained untrue statements or omitted facts to make the statements not misleading. They were also not prepared in accordance to the rules and regulations that govern their preparation. Additionally, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) CB-010’s treatment effect was not as durable as Defendants had led investors to believe; (ii) accordingly, CB-010’s clinical and commercial prospects were overstated; and (iii) as a result, the Offering Documents and Defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.
On June 10, 2022, Caribou issued a press release reporting “[p]ositive” data from the ANTLER Phase 1 clinical trial. Among other results, Caribou reported that “[a]t 6 months following the single dose of CB-010, [only] 40% of patients remained at CR [complete response] (2 of 5 patients) as of the May 13, 2022 data cutoff date”, prompting investor concern over the durability of the CB-010 treatment.
On this news, Caribou’s stock price fell $1.78 per share, or 20.41%, to close at $6.94 per share on June 10, 2022.
Then, on December 12, 2022, Caribou issued a press release “report[ing] New 12-month clinical data have been released from cohort 1 of the ongoing ANTLER Phase 1 study. [purportedly] Show[ed] long-term durability following a single infusion of CB-010 at the initial dose level 1 (40×106 CAR-T cells).” Among other results, Caribou reported that “3 of 6 patients maintained a durable CR at 6 months” and “2 of 6 patients maintain a long-term CR at the 12 month scan and remain on the trial”, thereby confirming investor fears that the CB-010 treatment lacked significant durability.
On this news, Caribou’s stock price fell $0.81 per share, or 9.03%, to close at $8.16 per share on December 12, 2022.
Caribou common stock continues trading below the $16.00 per-share Offering price as of the filing of this Complaint, causing financial losses to investors.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of Caribou’s securities, Plaintiff and other Class members have suffered significant losses and damages.
For more information on the Caribou class action go to: https://bespc.com/cases/CRBU
Inspirato Incorporated (NASDAQ: ISPO)
Class Period: May 11, 2022 to December 15, 2022
Deadline for Lead Plaintiff: April 17, 2023
The Complaint alleges that the Company made misleading and false statements to the market. Inspirato’s financial statements for the quarters ending March 31, 2022 and June 30, 2022 (collectively, the “Non-Reliance Periods”) could not be relied upon. The Company applied Accounting Standards Update (ASU No. 2016-02, Leases (Topic 842) (“ASC 842”), resulting in the unreliability of the Non-Reliance Periods. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. Investors suffered damages when the market discovered the truth about Inspirato.
For more information on the Inspirato class action go to: https://bespc.com/cases/ISPO
Kornit Digital Ltd.
Class Period: July 5, 2022 – February 17, 2021
Deadline for Lead Plaintiff: April 17, 2023
Kornit is a manufacturer of industrial digital printing technologies for textile, apparel, and garment industries. The Company’s digital inkjet printers enable end-users to print both direct-to-garment (“DTG”) and direct-to-fabric (“DTF”). DTG printing allows designs and images to be printed directly onto finished textiles, such as clothing and apparel. In DTF printing, large rolls of fabric pass through wide inkjet printers that print images and designs directly onto swaths of fabric that are then cut and sewn into a product, and can be used in the fashion and home décor industries. Kornit also manufactures and sells textile dyes and other consumables to be used in its digital printers. Kornit offers customer support contracts that provide technical support and equipment services for its printers.
The Company began offering software services during the Class Period. This included a suite of end to end fulfillment and production solutions called KornitX. Through KornitX, the Company offers, among other things: automated production systems, workflow, and inventory management.
The Company’s largest customer is multinational e-commerce company, Amazon.com, Inc. (“Amazon”). Among the largest of Kornit’s other customers during the Class Period were Delta Apparel, Inc. (“Delta Apparel”), a leading provider of activewear and lifestyle apparel products, and Fanatics, Inc. (“Fanatics”), a global digital sports platform and leading provider of licensed sports merchandise. Kornit’s ten largest customers account for more than 60% of its revenue. Accordingly, it was critically important for Kornit to maintain those major customers as well as continue to grow its customer base in order to achieve the Company’s ambitious goal of “becoming a $1 billion revenue company in 2026.”
Throughout the Class Period, Kornit repeatedly touted the purported competitive advantages provided by its technology and assured investors that it faced virtually no meaningful competition in the “direct-to-garment” printing market. The Company also stated that there was strong customer demand for its digital printing system, consumable products (such as textile inks), and the services Kornit provided to customers to maintain and control their digital printers as well as manage customer workflows. Kornit further assured investors that the purportedly strong demand for the Company’s products and services would enable it to maintain its existing customer base and attract new customers that would limit the risks associated with a substantial portion of its revenues being concentrated among a small number of large customers.
These and other statements made during the Class Period were false. In truth, Kornit and its senior executives knew, or at a minimum, recklessly disregarded, that the Company’s digital printing business was plagued by severe quality control problems and customer service deficiencies. Those problems and deficiencies caused Kornit to cede market share to competitors, which, in turn, led to a decrease in the Company’s revenue as customers went elsewhere for their digital printing needs. These misrepresentations caused Kornit ordinary shares to trade at artificially high prices during the Class Period.
Investors began to learn the truth on March 28, 2022, when Delta Apparel and Fanatics—two of Kornit’s major customers—announced that for months they had collaborated with one of Kornit’s principal competitors to develop a new digital printing technology that directly competed with products and services Kornit offered. Delta Apparel stated that it had already installed the new technology in four of its digital printing facilities and plans to expand. The utilization of this new, competing technology by Delta Apparel and Fanatics reflected the widespread dissatisfaction of Kornit’s major customers with the Company’s product quality and customer service, and meant that Kornit would likely lose revenue from two of its most important customers.
Kornit reported a net profit of $5.1million for the year 2022. However, it reported revenues that were higher than expected. The Company also issued revenue guidance for the second quarter of 2022 that was significantly below analysts’ expectations. Kornit attributed its disappointing guidance to a slowdown in orders from the Company’s customers in the e-commerce segment. The Company also admitted that for at most the past two quarters, Kornit knew Delta Apparel, one of its largest customers had purchased digital printing equipment from a Kornit competitor. These disclosures resulted in Kornit ordinary shares falling by $18.78 per unit, or 33.3%.
Kornit announced on July 5, 2022 that it would report a substantial revenue shortfall for its second quarter in 2022. Kornit forecasted that revenue for the second quarter would be between $56.4 million and $59.4 million. This is far below the $85 million to $95 million revenue guidance that the Company provided in May 2022. Kornit attributed the substantial revenue miss to “a significantly slower pace of direct-to-garment (DTG) systems orders in the second quarter as compared to our prior expectations.” As a result of these disclosures, the price of Kornit ordinary shares declined by an additional $8.10 per share, or 25.7%.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s shares, Plaintiff and other Class members have suffered significant losses and damages.
For more information on the Kornit class action go to: https://bespc.com/cases/KRNT
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. Bragar Eagel and Squire, P.C., is a nationally recognized law office with offices in New York City, California, South Carolina. The firm represents institutional and individual investors in complex commercial, securities, derivative, as well as other litigation in federal and state courts across the country. For more information, visit www.bespc.com. Advertising for attorneys. Past results are not indicative of future results.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
www.bespc.com