MERION, Pa., May 16, 2016 /PRNewswire/ -- The Law Offices of Marc S. Henzel (www.henzellaw.com), a firm focusing on shareholder litigation, gives notice to shareholders of investigation into the following securities for violations of the Federal Securities Laws:
On April 7, 2016, after the market closed, the Company issued a press release announcing disappointing third quarter 2016 financial results and lowering its guidance for fiscal year 2016. The release stated that "'[o]ur third quarter was a volatile period affected by weather, softness in the casual dining industry, and increased promotional activity by our peers.'" In addition, the release stated that "the Company [was] updating its full-year Adjusted Net Income per share guidance to $0.05 to $0.08 (vs. $0.12 to $0.17 previously)" based on updated assumptions, including a 1% decline in same-restaurant sales and a "net reduction of 11-14 corporate-owned Ruby Tuesday restaurants." On this news, the price of Ruby Tuesday shares fell nearly 12%, or $0.62 per share, to close at $4.60 per share on April 8, 2016.
If you purchased or otherwise acquired Ruby Tuesday securities between July 24, 2015 and April 7, 2016, please contact the firm.
On February 26, 2016, the Company announced that it would be unable to file its 2015 Annual Report on Form 10-K on a timely basis because the Company was "conducting an analysis of certain aspects of revenue recognition in Africa and China," but expected to file it within the 15-day extension period. On March 15, 2016, the Company announced it would be unable to file its 10-K within the extension period because it was "continuing to conduct an analysis of certain aspects of the timing of revenue recognition, more specifically, revenue cutoff, in Africa and China for the years ended December 31, 2013, 2014 and 2015 (and each of the quarters in those annual periods)." The Company also disclosed that it had received a subpoena from the U.S. Department of Justice relating the Company's sales practices and compliance with the U.S. Foreign Corrupt Practices Act. On this news, the price of Alere stock fell $4.14 per share, or over 9%, to close at $49.31 per share on March 15, 2016.
Then on April 20, 2016, the CEO of Abbott Laboratories was asked on the company's quarterly earnings conference call whether Abbott was reaffirming its commitment to the merger with Alere. Abbott's CEO declined to affirm the commitment to the merger, stating it "was not appropriate . . . to comment on Alere." On this news, the price of Alere stock fell $6.11 per share, or over 12%, to close at $43.36 per share on April 20, 2016.
If you purchased or otherwise acquired Alere Inc. securities between May 9, 2013 to April 20, 2016, please contact the firm.
On January 12, 2016, Anthem, Inc. publicly threatened to terminate its relationship with Express Scripts unless the Company would renegotiate its agreement with Anthem and deliver Anthem more than $3 billion in annual savings. On this news, the price of Express Scripts stock fell $5.89 per share, or 7%. Then, on March 21, 2016, Anthem sued Express Scripts, alleging that the Company breached its contract with Anthem by failing to negotiate drug pricing terms in good faith. The lawsuit revealed a conflict between Express Scripts and Anthem dating back to at least February 2015, including allegations that Express Scripts was experiencing severe operational problems that interfered with its ability to adequately serve Anthem and exposed Anthem to increased regulatory scrutiny. More importantly, investors learned that Anthem would almost certainly either renegotiate its contract in order to pay billions of dollars less to Express Scripts, or worse, seek to engage a competing PBM, which would result in the complete loss of Anthem's business. These disclosures caused the price of Express Scripts stock to decline $1.82 per share, or 2.6%, to close at below $70 per share.
If you purchased or otherwise acquired Express Scripts Holding Company securities between February 24, 2015 to March 21, 2016, please contact the firm.
In early 2016, First NBC began to disclose errors its accounting dating back to 2011. On February 1, 2016, First NBC announced that its earnings for the fourth quarter and fiscal year 2015 had significantly underperformed analysts' expectations, based, in large part, on the Company having taken an $8.2 million tax credit impairment. The price of First NBC stock fell $3.20 per share on this news to close at $27.20 per share. On March 16, 2016, First NBC announced it had discovered errors in its accounting for its Federal and State Historic Rehabilitation tax credit entities that could potentially require the Company to restate its previously reported fiscal year 2015 financial results. As a result of this news, the price of First NBC stock dropped 22%, or $5.33 per share, to close at $19.09 per share on March 16, 2016.
Then on April 8, 2016, First NBC announced that it would be forced to restate its consolidated financial statements for fiscal years 2014, 2013, 2012 and 2011, including each of the interim periods within fiscal years 2015, 2014 and 2013 – the Company's entire reporting history as a publicly traded company – and that the Company's financial statements for fiscal years 2011 through 2015 could no longer be relied upon. First NBC blamed "an error in the Company's methodology for the recognition of impairment of its investment in tax credit entities" and disclosed that "the Company had not properly consolidated variable interest entities related to Low-Income Housing Tax Credit entities." On this news, the price of First NBC stock declined another 2%, or $0.47 per share, to close at $18.65 per share the next trading day.
If you purchased or otherwise acquired First NBC Bank Holding Company securities between May 10, 2013 to April 8, 2016, please contact the firm.
Intrexon Corporation (NYSE: XON) 5/12/15 thru 4/20/16
On April 21, 2016, Spotlight Research issued a report stating that Intrexon's revenues were overstated by 50% through transactions with related parties. On this news, the price of Intrexon shares fell $9.73 per share, or approximately 27%, to close at $27.10 per share on April 21, 2016.
Later in the month, Spotlight Research issued a follow-up report on Intrexon explaining how the related-party transactions worked, stating that Intrexon "thinks of [itself] as a royalty company. The idea is that [it] find[s] an interesting application for [its] technology, create[s] a JV or Exclusive Channel Collaboration ('ECC') with an independent third party . . . and take[s] a royalty from the sales in that area if/when the technology is commercialized. While the idea is noble enough, in practice, [Intrexon] does not do this in our view. In reality, . . . [Intrexon] is creating revenues through round-tripping [its] own cash via related parties." According to the report, "[t]he transactions are easy to understand. First [Intrexon] . . . gives cash to the JV/ECC partner. Then, the JV/ECC partner gives that cash right back to [Intrexon] in exchange for 'services' rendered. We see no meaningful products being commercialized or material advancements being made. Yet [Intrexon] is able to recognize substantial revenue growth through moving [its] own cash via these transactions."
If you purchased or otherwise acquired Intrexon Corporation securities between May 12, 2015 to April 20, 2016, please contact the firm.
Vivint Solar, Inc. (Nasdaq: VSLR) 7/20/15 thru 3/7/16
On February 29, 2016, SunEdison filed a Notification of Late Filing on Form 12b-25 with the SEC disclosing that SunEdison would be unable to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2015. On this news, the price of Vivint shares fell $1.37 per share, or over 17%, to close at $6.52 per share on March 1, 2016.
On March 2, 2016, The Wall Street Journal published an article entitled "SunEdison's Takeover of Vivint Solar in Jeopardy as Banks Balk," which stated that the Vivint/SunEdison merger was in jeopardy. On this news, the price of Vivint shares fell $1.63 per share, or 25%, to close at $4.89 per share on March 2, 2016.
Then on March 8, 2016, Vivint announced that it was terminating the merger agreement and filed a lawsuit against SunEdison in Delaware Chancery Court alleging breach of contract. On this news, the price of Vivint shares fell $1.04 per share, or approximately 20%, to close at $4.17 per share on March 8, 2016.
If you purchased or otherwise acquired Vivint Solar, Inc. securities between July 20, 2015 to March 7, 2016, please contact the firm.
On January 7, 2016, the Company admitted that it was ceasing all operations in Nevada. Then on March 10, 2016, the Company also admitted that residential solar growth would decline in 2016 due to its having halted operations in Nevada, with installation growth falling from 76% in 2015 to just 40% in 2016.
The price of Sunrun common stock plummeted as the market learned that business metrics and financial prospects were not as strong as the IPO Registration Statement represented. The stock recently closed at a price of $7.39 per share on May 9, 2016, a $6.61 or 47.2% drop from the $14 per share IPO price.
If you purchased or otherwise acquired Sunrun, Inc. securities pursuant to the August 5, 2015 IPO, please contact the firm.
TiVo, Inc. (Nasdaq: TIVO) April 29, 2016
The firm is investigating the Board of Directors of TiVo Inc. ("TiVo" or the "Company") (TIVO) for potential breaches of fiduciary duties in connection with the sale of the Company to Rovi Corporation ("Rovi") for approximately $1.1 billion.
The Company's stockholders will receive $10.70 for each share of Company common stock they own, consisting of $2.75 in cash and $7.95 in shares of common stock of a new holding company that will own both Rovi and TiVo.
The investigation focuses on whether TiVo's Board of Directors breached their fiduciary duties to the Company's stockholders by failing to conduct a fair sales process and whether and by how much this proposed transaction undervalues the Company to the detriment of TiVo's shareholders.
If you would like to learn more about the investigation of these companies, would like to learn more about any potential claims or you wish to discuss these matters and have any questions concerning this announcement or your rights, please contact Marc S. Henzel (610) 660-8000, email at Mhenzel@Henzellaw.com, or to sign up online, visit the firm's website at www.henzellaw.com.
The Law Offices of Marc S. Henzel is a national shareholder litigation firm representing shareholders & investors in various areas of securities laws including but not limited to: class actions, derivatives, transactional (buyouts/takeovers/mergers) and FINRA & NYSE Arbitrations.
LAW OFFICES OF MARC S. HENZEL
MERION STATION, PA 19066
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SOURCE Law Offices of Marc S. Henzel