Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Infosys, Zynerba, iRobot, and Zendesk and Encourages Investors to Contact the Firm
NEW YORK, Dec. 11, 2019 /PRNewswire/ -- 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 Infosys Limited (NYSE: INFY), Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE), iRobot Corporation (NASDAQ: IRBT), and Zendesk, Inc. (NYSE: ZEN). 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.
Infosys Limited (NYSE: INFY)
Class Period: July 7, 2018 to October 20, 2019
Lead Plaintiff Deadline: December 23, 2019
On October 21, 2019, Infosys disclosed that it had received whistleblower reports alleging "unethical practices" by the Company's executive management. An unnamed group sent letters to Infosys' Board and the U.S. Securities and Exchange Commission alleging that the Company had taken "unethical" steps to inappropriately boost short-term revenue and profit. These letters also alleged that the Company's Chief Executive Officer ("CEO"), Salil Parekh, was bypassing standard reviews of large contracts in order to skirt accounting scrutiny.
On this news, the price of Infosys shares fell by more than 16% to close at $9.29 per share.
The complaint, filed on October 23, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company improperly recognized revenues to inflate short-term profits; (2) the Company's CEO, Salil Parekh, bypassed reviews and approvals for large deals to avoid accounting scrutiny; (3) management pressured the Company's finance team to hide information from auditors and the Company's Board of Directors; and (4) as a result, defendants' statements about the Company's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
For more information on the Infosys class action, go to: https://bespc.com/infy
Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE)
Class Period: March 11, 2019 to September 17, 2019
Lead Plaintiff Deadline: December 23, 2019
Zynerba is developing Zygel (ZYN002), a transdermal CBD gel, which is presently in clinical trial. In April 2018, Zynerba initiated the Phase 2 of BELIEVE 1 (Open Label Study to Assess the Safety and Efficacy of Zygel Administered as a Transdermal Gel to Children and Adolescents with Developmental and Epileptic Encephalopathy ("DDE")) clinical trial ("BELIEVE 1 Trial"), a six-month open label multi-dose clinical trial designed to evaluate the efficacy and safety of Zygel in children and adolescents (ages three to seventeen years) with DEE as classified by the International League Against Epilepsy ("ILAE").
On September 18, 2019, during pre-market hours, Zynerba issued a press release announcing results from the BELIEVE 1 Trial evaluating topical gel Zygel in children and adolescents with DEE (the "September 2019 Press Release"). While Zynerba asserted that Zygel was well-tolerated in the September 2019 Press Release, it also disclosed that, among patients enrolled in the BELIEVE 1 Trial, the rate of treatment emergent adverse events ("TEAEs") was 96%, the rate of treatment related adverse events ("TRAEs") was 60%, and there were ten patients who reported serious adverse events ("SAEs"), of which, "two SAEs (lower respiratory tract infection and status epilepticus) were determined to be possibly related to treatment."
On this news, Zynerba's stock price fell $2.46 per share, or 21.77%, to close at $8.84 per share on September 18, 2019.
The complaint, filed on October 23, 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) Zygel was proving unsafe and not well-tolerated in the BELIEVE 1 Trial; (ii) the foregoing created a foreseeable, heightened risk that Zynerba would fail to secure the necessary regulatory approvals for commercializing Zygel for the treatment of DEE in children and adolescents; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.
For more information on the Zynerba class action go to: https://bespc.com/zyne
iRobot Corporation (NASDAQ: IRBT)
Class Period: November 21, 2016 to October 22, 2019
Lead Plaintiff : December 23, 2019
On April 23, 2019, after the close of trading, iRobot surprised the market by announcing quarterly revenues that were below analyst expectations and also revealed surging inventory levels. In response to this news, iRobot's stock price fell from $130.57 per share on April 23, 2019, to $100.42 per share on April 24, 2019.
Then, on July 23, 2019, after the close of trading, iRobot decreased its full-year earnings forecast. On this news, iRobot's stock price fell from $89.63 per share on July 23, 2019, to $74.51 per share on July 24, 2019.
Finally, on October 22, 2019, after the close of trading, iRobot cut the high end of its revenue expectations for the year, from $1.25 billion to $1.21 billion, and said it rolled back price increases after a "suboptimal" customer response. The Company reported increased inventory levels once again, with third quarter 2019 ending inventory of $248 million or 149 days in inventory ("DII") compared to the $161 million or 113 DII a year prior. On this news, iRobot's stock price fell from $54.03 per share on October 22, 2019, to $49.06 per share on October 23, 2019.
The complaint, filed on October 24, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) iRobot's explosive growth was not based on increased demand, expanding margins, and product innovations, as it claimed, but rather based on channel stuffing; (2) the Company attempted to conceal its actions by acquiring its distributors in Europe and Asia; (3) these acquisitions were designed to clean up the Company's global inventory and mask falling demand; and (4) as a result, iRobot's public statements were materially false and misleading at all relevant times.
For more information on the iRobot class action go to: https://bespc.com/irbt
Zendesk, Inc. (NYSE: ZEN)
Class Period: February 6, 2019 to October 1, 2019
Lead Plaintiff Deadline: December 23, 2019
On July 30, 2019, Zendesk announced disappointing financial results for the second quarter of 2019. Additionally, Zendesk disclosed that its sales growth in the Europe, Middle East, and Africa and Asia-Pacific regions "didn't quite live up to [defendants'] own expectations, and lagg[ed] other regions." Zendesk blamed a mix of macro and operational issues that had been driving the weakness. With respect to fiscal 2019 guidance, the Company notified that it was "maintaining a prudent view on the year as [defendants] gain[ed] a better understanding of the dynamics, internal and external, in EMEA and APAC," and that it thus expected ongoing revenue growth of just 30%.
On this news, the price of Zendesk stock declined significantly, falling nearly $10 per share to close at $83.56 per share on July 31, 2019.
Prior to September 24, 2019, a third party alerted Zendesk to the fact that the personally identifiable data of its chat and support accounts had been breached. By September 24, 2019, the Company's internal investigation had revealed that some 10,000 accounts opened before November 2016 had been breached. On October 2, 2019, Zendesk for the first time publicly disclosed the data breach, stating that the data breach only affected customers who had signed up prior to November 1, 2016.
On this news, the price of Zendesk stock fell another $2.90 per share to close at $69.81 per share on October 2, 2019.
The complaint, filed on October 24, 2019, alleges that throughout the Class Period, defendants made materially false and misleading statements to investors and failed to disclose adverse facts pertaining to the Company's business, operations, and financial results. Specifically, the Company concealed material information and/or failed to disclose that: (a) Zendesk's clients had been subject to data breaches dating back to 2016; (b) Zendesk was experiencing slowing demand for its SaaS offerings, particularly in Germany, the United Kingdom, and Australia, due in large part to political uncertainty and China trade issues there; and (c) as a result of the foregoing, Zendesk's business metrics and financial prospects were not as strong as defendants had led the market to believe during the Class Period. As a result of this information being withheld from the market, the price of Zendesk stock was artificially inflated to more than $93 per share during the Class Period. While Zendesk common stock was trading at these artificially inflated prices, certain of the Company's officers and/or directors cashed in, selling approximately 409,000 of their personally held Zendesk shares, reaping more than $32.7 million in proceeds.
For more information on the Zendesk class action go to: https://bespc.com/zen
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com
SOURCE Bragar Eagel & Squire, P.C.
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