Course period: November 15, 2021 – February 28, 2022
Lead Applicant Deadline: May 31, 2022
On February 28, 2022, Lucid revealed that it had only shipped around 125 EVs in 2021 – 452 less than expected – and would only produce between 12,000 and 14,000 EVs in 2022, despite claims previous reports that it would produce 20,000. The company also announced that it would delay the launch of its Lucid Gravity SUV from 2023 to 2024, citing “extraordinary supply chain and logistics challenges” as the cause.
On this news, Lucid common stock fell $3.99, or 13.8%, to close at $24.99 per share on March 1, 2022, hurting investors.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants overstated Lucid’s production capabilities while concealing that “extraordinary supply chain and logistics challenges” had hampered the company’s operations since the beginning of the Class Period.
For more information on the Lucid class action, please visit: https://bespc.com/cases/LCID
ABBVie, Inc. (NYSE: ABBV)
Course period: April 30, 2021 – August 31, 2021
Lead Applicant Deadline: June 6, 2022
AbbVie is one of the largest pharmaceutical companies in the world. The company’s revenues will come under significant pressure in the coming years when its top-selling drug, Humira, loses patent protection in 2023. As a result, AbbVie’s future revenues and profits are largely dependent on its ability to develop new revenue streams to offset Humira’s lost sales. Rinvoq, an anti-inflammatory drug made by AbbVie and used to treat rheumatoid arthritis (RA) and other conditions by inhibiting Janus kinase (JAK) enzymes, has been touted as one such drug. Rinvoq was originally approved in the United States to treat moderate to severe rheumatoid arthritis only. However, AbbVie was actively pursuing additional treatment indications and in 2020 applied to the US Food and Drug Administration (FDA) to approve Rinvoq for the treatment of several other conditions.
As relevant here, Rinvoq is similar to other JAK inhibitor drugs, including Xeljanz, made by Pfizer Inc. When the FDA approved Xeljanz in 2012 for the treatment of rheumatoid arthritis, it took a safety trial additional to assess the risk of Xeljanz triggering certain serious side effects. effects. Beginning in February 2019, the FDA repeatedly warned the public that safety testing indicated that using Xeljanz could lead to serious heart problems, cancer, and other adverse events. Notwithstanding the similarities between Rinvoq and Xeljanz, during the class period the defendants assured investors that Rinvoq was significantly safer than Xeljanz and not subject to the same regulatory risks.
However, investors began to uncover the truth about Rinvoq’s significant risks on June 25, 2021, when AbbVie revealed that the FDA was delaying its review of expanded treatment applications for Rinvoq due to safety concerns associated with Xeljanz. On this news, AbbVie’s common stock price declined $1.76 per share, or approximately 1.5%, from a close of $114.74 per share on June 24, 2021 to $112.98. per share on June 25, 2021.
Then, on September 1, 2021, the FDA announced that the final results of the Xeljanz safety trial established an increased risk of serious adverse events, even with low doses of Xeljanz. As a result, the FDA has determined that it will require new and updated warnings for Xeljanz and Rinvoq because Rinvoq “shares[s] similar mechanisms of action with Xeljanz” and “may have similar risks as seen in the Xeljanz safety trial. The FDA has also indicated that it will further limit the approved indications for Rinvoq due to these safety concerns. AbbVie common stock fell $8.51 per share, or more than 7%, from a close of $120.78 per share on August 31, 2021 to $112.27 per share on September 1, 2021.
After the appeal period, on December 3, 2021, AbbVie announced that the FDA had updated the Rinvoq label to require additional safety warnings and limit the marketing of Rinvoq to use only after treatment failure with other medications. On January 11, 2022, the defendants admitted that these Rinvoq label changes would negatively impact sales, causing the company to reduce its long-term forecast for Rinvoq sales in 2025.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and/or misleading statements regarding the company’s business and operations. Specifically, defendants misrepresented and/or failed to disclose that: (1) the safety concerns regarding Xeljanz extended to Rinvoq and other JAK inhibitors; (2) as a result, it was likely that the FDA would require additional safety warnings for Rinvoq and delay approval of additional treatment indications for Rinvoq; and (3) as a result, defendants’ statements about the company’s business, operations and prospects lacked a reasonable basis. Due to the defendants’ wrongful acts and omissions and the significant decline in the market value of AbbVie’s securities, AbbVie’s investors suffered substantial damages.
For more information on the AbbVie class action, please visit: https://bespc.com/cases/ABBV
Playstudios, Inc. (NASDAQ:MYPS)
Course period: June 22, 2021 – March 1, 2022
Lead Applicant Deadline: June 6, 2022
Playstudios has repeatedly communicated to the market that its game Patron of the Kingdom was “on track” for a 2021 release throughout this year. The Company said it will derive significant revenue and benefits from this launch, including near representations of the SPAC merger between the Company and Acies Acquisition Corp. The Company then announced on February 26, 2022 that Patron of the Kingdom had been “suspended” indefinitely.
The filed complaint alleges that the defendants made materially false and/or misleading statements and/or failed to disclose that: (i) Playstudios had significant issues with its flagship game, Kingdom Boss; (ii) Playstudios would not release Kingdom Boss as intended; and (iii) Playstudios had not revised its financial projections to take into account the problems encountered with Kingdom Boss. Due to defendants’ wrongful conduct, class members paid artificially inflated prices for their Playstudios titles and suffered significant losses and damages.
For more information on the Playstudios class action, please visit: https://bespc.com/cases/MYPS
International Business Machines Corporation (NYSE:IBM)
Course period: April 4, 2017 – October 20, 2021
Lead Applicant Deadline: June 6, 2022
On October 20, 2021, after the market closed, IBM revealed that it would suffer a revenue shortfall, with its Cognitive & Cloud Computing segment being the main culprit. Without the knowledge of the investing public, the Company has stopped and/or restricted its inappropriate conduct described below, which has adversely affected the results of the Company.
At this news, IBM common stock fell from its close on October 20, 2021 at $133.87 per share to close at $121.07 per share on October 21, 2022, a loss of nearly $13.00. per share, thereby hurting investors.
The Complaint filed in this Class Action alleges that prior to and throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the activities , operations and outlook of the company. Specifically, defendants overstated IBM’s revenue from its strategic side of the business, misclassifying and/or shifting revenue from its non-strategic mainframe portion of the business, in order to assuage expectations. of the market regarding the company’s future prospects and to increase the incentive compensation of its executives. This misconduct began before the commencement of the Class Period and continued throughout. The defendants in the case are IBM, Virginia M. Rometty, Martin J. Schroeter, James J. Kavanaugh and Arvind Krishna. The complaint alleges that the defendants’ conduct violates sections 10(b) and 20(a) of the Exchange Act of 1934.
For more information on the IBM class action, go to: https://bespc.com/cases/IBM
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com . Lawyer advertisement. Prior results do not guarantee similar results.
Bragar Eagel & Squire, CP
Brandon Walker, Esq.
Melissa Fortunato, Esq.