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Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Lifecore, Spire Global, Oddity Tech, and Arbor Realty and Encourages Investors to Contact the Firm
Globe Newswire 14-Sep-2024 9:00 PM
NEW YORK, Sept. 14, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Lifecore Biomedical, Inc. (NASDAQ:LFCR), Spire Global, Inc. (NYSE:SPIR), Oddity Tech (NASDAQ:ODD), and Arbor Realty Trust, Inc. (NYSE:ABR). 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.
Between September 2022 and February 2024, Lifecore's share price declined in response to a series of disclosures concerning material weaknesses in internal control over financial reporting, and delays in making required filings with the U.S. Securities and Exchange Commission (SEC).
The lawsuit alleges that (i) Lifecore maintained deficient internal controls over financial reporting; (ii) as a result, the Company issued several financial statements that were inaccurate and would need to be restated; (iii) Lifecore's purported remediation efforts with respect to the foregoing deficiencies were ineffective; (iv) all of the foregoing impaired Lifecore's ability to timely file periodic reports with the SEC in compliance with NASDAQ listing requirements; and (v) accordingly, the Company's financial position and/or prospects were materially overstated.
On August 14, 2024, after the market closed, the Company announced it would be unable to timely file its second quarter 2024 financial report as the Company was "reviewing its accounting practices and procedures with respect to revenue recognition" regarding certain Space Services contracts and "related internal control matters." The Company disclosed the "type of Contracts that the Company has identified for re-evaluation resulted in recognized revenue of $10 to $15 million on an annual basis" and "additional financial measures such as gross profit could also be impacted."
On this news, the Company's share price fell $3.41 or 33.56%, to close at $6.75 per share on August 15, 2024, on unusually heavy trading volume.
The complaint filed in this class action 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 there were embedded leases of identifiable assets and pre-space mission activities for certain Space Services contracts; (2) that Spire Global lacked effective internal controls regarding revenue recognition for these contracts; (3) that, as a result, the Company overstated revenue for certain Space Services contracts; and (4) 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.
The lawsuit alleges Defendants made materially false and/or misleading statements regarding the Company's business, operations, and compliance policies, and/or failed to disclose that: (i) Oddity Tech overstated its AI technology and capabilities, and/or the extent to which this technology drove the Company's sales; (ii) Oddity Tech's repeat purchase rates and revenues were, at least in part, derived from unsustainable and deceptive sales and advertising practices; and (iii) Oddity Tech downplayed the true scope and severity of ongoing civil litigation against the Company and/or its subsidiaries.
Arbor Realty invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States.
The Arbor Realty class action lawsuit alleges that defendants provided investors with material information concerning Arbor Realty's continual claims of strong health of their loan book which materially misled and/or failed to disclose information pertinent to investors.
The Arbor Realty class action lawsuit further alleges that on July 12, 2024, Bloomberg reported that Arbor Realty was being probed by federal prosecutors and the Federal Bureau of Investigation in New York and that "[t]he investigators are inquiring about lending practices and the company's claims about the performance of their loan book." On this news, the price of Arbor Realty stock fell 17%, according to the complaint.
Bragar Eagel & Squire, P.C. 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, 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.
