NEW YORK, Oct. 24, 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 Covetrus, Inc. (NASDAQ: CVET), Match Group, Inc. (NASDAQ: MTCH), Vivint Solar, Inc. (NYSE: VSLR), and ADTRAN, Inc. (NASDAQ: ADTN). 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.
Covetrus, Inc. (NASDAQ: CVET)
Class Period: February 8, 2019 to August 12, 2019
Lead Plaintiff Deadline: November 29, 2019
Covetrus was formed through a spin-off and merger of the Animal Health Business of Henry Schein with Vets First Choice (VFC), a privately-held company, to create what the company described to investors as the only global animal health technology and services company.
The complaint, filed on September 30, 2019, alleges that in the offering documents for the spin-merger and throughout the Class Period, defendants made a series of false and misleading statements and omissions concerning the newly combined companies infrastructure and capabilities, as well as the true costs of becoming independent from Henry Schein. After the merger, defendants assured investors that the integration of the legacy Henry Schein Animal Health Business and VFC was on track to hit financial targets. On August 13, 2019, Covetrus shocked investors by reporting a net loss of $0.09 per share for the second quarter of 2019 compared to consensus analyst estimates of $0.17 in net income per share. Covetrus also slashed its 2019 EBITDA guidance to just $200 million, down substantially from its prior EBITDA guidance of approximately $250 million issued in February and May 2019. In doing so, Covetrus admitted that the Company would have to spend tens of millions of dollars more in infrastructure spending and redundant costs.
The company also admitted previously undisclosed difficulties integrating the platforms and disclosed increased spending to eliminate obligations to Henry Schein as part of the spin-off agreement. In response to these and other disclosures, the company’s stock price decreased by 40%, or $9.30 per share, to close at $13.89 per share on August 13, 2019.
The complaint further alleges that during the Class Period, defendants issued a series of false and/or misleading statements and failed to disclose material adverse facts about Covetrus business, operations, and prospects. Specifically, defendants representations to investors: (i) overstated Covetrus capabilities with regard to inventory management and supply chain services; (ii) understated the costs of the integration of Henry Scheins Animal Health Business and VFC, including the timing and nature of those costs; (iii) understated Covetrus separation costs from Henry Schein; and (iv) understated the impact on earnings from online competition and alternative distribution channels as well as the impact of the loss of a large customer in North America just prior to the company’s separation from Henry Schein.
For more information on the Covetrus class action go to: https://bespc.com/cvet.
Match Group, Inc. (NASDAQ: MTCH)
Class Period: August 6, 2019 to September 25, 2019
Lead Plaintiff Deadline: December 2, 2019
On September 25, 2019, The Federal Trade Commission (FTC) announced that it had sued Match.com for, among other things, using artificial love interest ads to deceive consumers into buying or upgrading subscriptions, failing to resolve disputed charges, and intentionally making it difficult to cancel subscriptions.
On this news, the company’s share price fell $1.39 per share, or nearly 2%, to close at $71.44 per share on September 25, 2019.
The complaint, filed October 3, 2019, alleges that throughout the class period 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 used fake love interest ads to convince customers to buy and upgrade subscriptions; (2) that the company made it difficult and confusing for consumers to cancel their subscriptions; (3) that, as a result, the company was reasonably likely to be subject to regulatory scrutiny; (4) that the company lacked adequate disclosure controls and procedures; and (5) that, as a result, defendants positive statements about the company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
To learn more about the Match Group class action go to: https://bespc.com/mtch
Vivint Solar, Inc. (NYSE: VSLR)
Class Period: March 5, 2019 and September 26, 2019
Lead Plaintiff Deadline: December 10, 2019
On September 27, 2019, Marcus Aurelius Value published a report alleging that “28 undisclosed lawsuits . . . specifically allege Vivint forged customer contracts or otherwise engaged in fraud or deception.”
On this news, the company’s share price fell $0.14 per share, or over 2%, to close at $6.55 per share on September 27, 2019.
The complaint, filed on October 11, 2019, alleges that throughout the class period, 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 engaged in fraudulent practices, including forging customer contracts; (2) that, as a result, the company’s reported sales and megawatts installed were overstated; (3) that these practices were reasonably likely to lead to regulatory scrutiny: (4) that, as a result, the company’s earnings would be materially and adversely impacted; and (5) 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.
To learn more about the Vivint class action go to: https://bespc.com/vslr
ADTRAN, Inc. (NASDAQ: ADTN)
Class Period: February 28, 2019 to October 9, 2019
Lead Plaintiff Deadline: December 16, 2019
On July 17, 2019, ADTRAN announced “preliminary” earnings for second quarter 2019 due to its ongoing assessment of its current and previously reported excess and obsolete inventory reserves (“E&O reserves”).
On this news, the company’s share price fell $3.69 per share, or over 23%, to close at $12.13 per share on July 18, 2019.
Then, on October 9, 2019, the company announced that its “revenue this quarter has been significantly impacted by a pause in shipments to a Tier 1 customer in Latin America and the continued slowdown in the spending at an international Tier 1 customer.”
On this news, the company’s share price fell $2.10 per share, or over 19%, to close at $8.81 per share on October 10, 2019.
The complaint, filed on October 17, 2019, alleges that throughout the Class Period 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 that: (1) there were material weaknesses in the company’s internal control over financial reporting; (2) as a result, certain E&O reserves had been improperly reported; (3) as a result, the company’s financial results for certain periods were misstated; (4) there would be a pause in shipments to the company’s Latin American customer; and (5) 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 ADTRAN class action go to: https://bespc.com/adtn
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
investigations@bespc.com
www.bespc.com