NEW YORK, Oct. 30, 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 electroCore, Inc. (ECOR), Tencent Music Entertainment Group (TME), Myriad Genetics, Inc. (MYGN), and Waitr Holdings, Inc. (WTRH). 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.
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
Waitr Holdings, Inc. (WTRH)
Class Period: Securities purchased between May 17, 2018 to August 8, 2019 (the “Class Period”) and/or pursuant or traceable to Waitr’s November 2018 going public transaction with Landcadia or in its May 2019 secondary public offering (“SPO”).
Lead Plaintiff Deadline: November 26, 2019
Waitr is an online food ordering and delivery services company that was formed on November 15, 2018 through a public transaction between Waitr Inc. and Landcadia Holdings, Inc. After the transaction, its shares began publicly trading on the Nasdaq under the symbol "WTRH."
On August 8, 2019, the company disclosed highly disappointing financial and operational results for the second quarter of 2019, including the resignation of its CEO; that its integration of BiteSquad.com, LLC, which it acquired in January 2019, was not proceeding according to plan; that the company was laying off personnel; and that losses were far higher than previously anticipated.
On this news, the price of Waitr shares fell 50%. Waitr's market capitalization was $134 million, down from $910 million on March 13, 2019.
For more information on the Waitr class action go to: https://bespc.com/WTRH
About Bragar Eagel & Squire, P.C.:
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