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Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Grocery Outlet, Target, Monolithic Power Systems, and ICON and Encourages Investors to Contact the Firm
Globe Newswire 25-Feb-2025 9:00 PM
NEW YORK, Feb. 25, 2025 (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 Grocery Outlet Holding Corp. (NASDAQ:GO), Target Corp. (NYSE:TGT), Monolithic Power Systems, Inc. (NASDAQ:MPWR), and ICON Public Limited Company (NASDAQ:ICLR). 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.
The Complaint alleges that after-market on May 7, 2024, Grocery Outlet announced its financial results for the first quarter of fiscal 2024, published significantly below-expectation guidance for the second quarter, and further reduced its guidance for the full fiscal year 2024. The Complaint states that the Company attributed its results and lowered guidance on "unforeseen systems transition costs that surfaced at the end of the quarter" and the resulting "residual expense from our commission support program as we finish store physical inventory counts in the second quarter." Following this news, Grocery Outlet's stock price fell to $20.88 per share on May 8, 2024, a decline of about 19.38% in the span of just a single day.
The Complaint alleges that the Defendants misled investors by making false and misleading statements about Target's Environmental, Social and Governance ("ESG") and Diversity, Equity, and Inclusion ("DEI") mandates that led to widespread customer boycotts following Target's 2023 LGBT-Pride campaign (the "2023 LGBT-Pride Campaign" or the "Campaign"). The Complaint continues to allege that negative effects of the Campaign on Target's business, including a subsequent campaign in 2024 (the "2024 Campaign"), led to a massive decline in Target's stock price, and specifically, the 2023 LGBT-Pride Campaign offended certain Target customers, provoking consumer backlash and boycotts that caused Target's sales to fall for the first time in six years. The Complaint also states that unbeknownst to investors, and contrary to Target's public statements, Target's Chief Executive Officer ("CEO") Brian C. Cornell ("Cornell") and its Board of Directors (the "Board") did not oversee or disclose the known risks of Target's 2023 LGBT-Pride Campaign and the 2024 Campaign.
Monolithic Power Systems is a provider of power management components used in electronic systems. Nvidia Corporation – the world's leading supplier of GPUs – is Monolithic Power Systems' largest customer.
The Monolithic Power Systems class action lawsuit alleges that defendants throughout the class period made false and/or misleading statements and/or failed to disclose that: (i) Monolithic Power Systems' voltage regulator modules and power management integrated circuits were suffering from significant performance and quality control issues; (ii) these defects had, in turn, negatively impacted the performance of certain products offered by Nvidia in which such products were used; (iii) Monolithic Power Systems had failed to adequately address and resolve known issues affecting the performance of the power management solutions Monolithic Power Systems supplied to Nvidia; (iv) Monolithic Power Systems' relationship with Nvidia had been irreparably damaged due to the significant performance and quality control problems affecting the products it supplied to Nvidia and Monolithic Power Systems' failure to adequately address such issues; and (v) as a result of the above, Monolithic Power Systems was acutely exposed to material undisclosed risks of significant business, financial, and reputational harm.
On October 30, 2024, Monolithic Power Systems announced financial results for its fiscal quarter ending September 30, 2024, revealing a sudden and surprising slowdown in Monolithic Power Systems' critical Enterprise Data segment. Specifically, Monolithic Power Systems reported that quarterly revenue within Monolithic Power Systems' Enterprise Data business declined sequentially to $184 million, down from $187 million in the prior quarter, missing consensus estimates of $211 million by nearly 13%. On this news, the price of Monolithic Power Systems common stock fell more than 17%.
Then, on November 11, 2024, Edgewater Research analysts published a report revealing that Nvidia had cancelled half of its outstanding Monolithic Power Systems orders and intended to eliminate Monolithic Power Systems' allocation to most variants of its next-generation Blackwell chips due to "[p]erformance issues" with Monolithic Power Systems' products. The report further disclosed that Nvidia engineers had "lost confidence" in Monolithic Power Systems' products and decided to turn to Monolithic Power Systems' competitors as Nvidia's "primary suppliers." On this news, the price of Monolithic Power Systems common stock fell nearly 15%.
If you purchased or otherwise acquired Monolithic Power Systems shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
The ICON class action lawsuit alleges that defendants throughout the Class period made false and/or misleading statements and/or failed to disclose that: (i) ICON was suffering from a material loss of business due to customer cost reduction measures and other widespread funding limitations impacting ICON's client base; (ii) ICON's purported Functional Service Provision ("FSP") and hybrid model offerings were insufficient to shield ICON from the adverse effects of a significant market downturn; (iii) the requests for proposals ICON received from its biotechnology customers during the Class Period were used in substantial part as price discovery tools, and thus were not indicative of underlying client demand; (iv) ICON's customers had canceled contracts, limited or reduced engagements, delayed clinical trial work, and/or failed to enter into new contracts with ICON for additional clinical trial work at historical rates once existing projects ended (or were scheduled to end) in 2024; (v) ICON's two largest customers were diversifying their CRO providers away from ICON; (vi) as a result of the above, ICON's reported net new business awards and book-to-bill metrics materially misrepresented client demand for ICON's services; and (vii) consequently, ICON was tracking materially below the 2024 revenue and EPS guidance issued during the Class Period and such guidance lacked a reasonable factual basis.
On October 23, 2024, ICON reported financial results for its third fiscal quarter of 2024, disclosing that ICON had generated quarterly revenues of just $2.03 billion, revealing a surprise "revenue shortfall" that significantly missed consensus estimates of $2.13 billion by more than $100 million. ICON further revealed that its quarterly net new business wins had declined sequentially to $2.3 billion during the quarter from $2.6 billion in the prior quarter and that ICON's book-to-bill ratio fell sequentially to 1.15, down from 1.22 in the prior quarter. During the corresponding conference call, ICON CEO, defendant Stephen Cutler, revealed that two of ICON's large pharmaceutical customers had materially curtailed upcoming FSP trial work due to ongoing cost containment measures, which he stated would continue to negatively impact ICON's financial performance going forward. On this news, the price of ICON ordinary shares fell more than 20% over two trading sessions.
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.
