How Investors are Fighting for Their Rights in the Genesis & Gemini Cases

Public

On September 19, 2022,  a jury in Sotera’s EtO emissions trial found the Company liable for the plaintiff’s cancer. The jury called Sotera’s & Sterigenics’ “willful and wanton” misconduct in not preventing toxic EtO emissions and failing to warn about the severe health hazard posed by the Company’s Illinois facility. 

On this news, Sotera’s stock price plunged 33.3% and the Company lost over $1.3 billion of its capitalization, seriously damaging investors.

Going back in September 2018, cancer-stricken plaintiffs filed a surge of lawsuits in Illinois against Sotera, alleging that emissions from the Company’s sterilization facility had caused their cancer. 

On September 30, 2019, after significant pressure from the public and action by Illinois regulators, Sotera announced the closure of its Illinois facility. 

In August 2020, cancer-stricken plaintiffs living near a Sterigenics facility in Georgia filed lawsuits similar to those filed in Illinois. 

Despite closing its Illinois facility and assuring investors and the public of the Company’s purportedly effective safeguards to limit EtO emissions, Sotera continued to emit dangerous levels of EtO gas from other facilities.

Taking all facts and trial results into account, Investors have all reasons to suspect that the Company and its Leaders could grossly violate shareholders' rights by hiding information and not correcting the business model, which subsequently led to a drop in the value of their shares.

Sotera Health Co

Mismanagement

Misleading Statements

Failure to Disclose

Malpractice

Negligence

Breach of Fiduciary duty

Omissions

Directors

Management

Service Provider

 Investors of Sotera (SHC) to fight Emissions Liability related losses back

Stocks

Long

Newell Brands Inc (NWL) agreed to pay up to $102.5 million to settle a securities class action lawsuit to avoid further litigation.

The complaint alleged that Newell and several of its current and former officers and directors issued a materially untrue and misleading registration statement and joint proxy prospectus in connection with Newell’s acquisition of Jarden Corporation. 

The acquisition closed on April 15, 2016, with shareholders receiving cash and Newell shares issued pursuant to the Offering Documents in exchange for their Jarden shares. 

The complaint specifically alleged that the Offering Documents contained two categories of alleged misstatements and omissions:

that Newell’s core sales growth was stalling and, at the time of the acquisition, was dependent on so‑called “period end buys” that offered customers additional incentives outside their normal terms; 

Newell had talent gaps and functional deficiencies, which posed a risk to Newell’s ability to successfully integrate Jarden. 

Newell Brands Inc

Other

Newell Brands Inc acquisition of Jarden Corporation Settlement

On January 24, 2023, shares of Adani Group's publicly listed companies plunged after Hindenburg Research alleged the Company in fraud and manipulations.

On this news, Adani Enterprises (ADEL) shares dropped about 20%, injuring investors around the globe.

Hindenburg Research alleged that Adani Group was “engaged in a brazen stock manipulation and accounting fraud scheme” in puffing out its valuations and accused the firm of money laundering. 

The research firm said that it sees an 85% downside from current valuations, based solely on their fundamentals clarifying that multiple firms under Adani were highly leveraged in comparison to their peers and that the situation was worsening due to negative free cash flows. 

Concerns over Adani’s debt position came to the light after the release of a CreditSights report in 2022 that described the group as largely overleveraged which allegation the Company denied. 

Adani Enterprises recently announced a $2.5 billion Follow-on Public Offering (FPO) in which participating major international banks BNP Paribas, Société Générale, and Goldman Sachs, bought the stock at 3276 rupees which is 15% higher than the current price.

Pershing Square's Bill Ackman found the Hindenburg Research's report on Adani Group companies “highly credible and extremely well researched”.

Adani Group called the report a malicious combination of selective misinformation and outdated, baseless, and discredited claims aimed at damaging the reputation and hurting demand for the stock. The group said it is exploring the possibility of taking legal action.

In the last 2 trading sessions, the market capitalization of Adani Group has decreased by over $50 billion, seriously damaging investors.

Given the seriousness of the allegations, the accompanying events (Offering), and the magnitude of the market reaction, Investors have every reason to suspect that one of the participants in the Case has grossly violated the rights of shareholders, leading to significant monetary losses.

Adani Enterprises Ltd

Financial Misrepresentation

Fraud

Price manipulation

Insider Trading

Shareholder

Influencer

Investment Bank

Research Entity

Hedge Fund

Investors are to fight Adani Group losses back after Hindenburg Report on Fraud

In re Infinity Q Diversified Alpha Fund and Infinity Q Volatility Alpha Fund, L.P. Securities Litigation.

Defendants agreed to pay up to $48 million to settle a securities class action lawsuit to avoid further litigation.

This is a federal securities class action on behalf of all persons and entities who purchased the Infinity Q Diversified Alpha Fund Investor Class shares (IQDAX) or Institutional Class shares (IQDNX) between December 21, 2018, and February 22, 2021, both dates inclusive.

The Complaint alleged that the Company and its Leaders made false and/or misleading statements and/or failed to disclose that: 

Infinity Q’s Chief Investment Officer made adjustments to certain parameters within the third-party pricing model that affected the valuation of the swaps held by the Fund; 

consequently, Infinity Q would not be able to calculate Net Asset Value (NAV) correctly; 

as a result, the previously reported NAVs were unreliable; 

because of the foregoing, the Fund would halt redemptions and liquidate its assets; and 

as a result, the Prospectuses were materially false and/or misleading and failed to state information required to be stated therein.

Infinity Q Diversified Alpha Fund

Unit (ETF, ETN, Unit)

On December 31, 2022, The New York Times published an article entitled “The Shameful Open Secret Behind Southwest’s Failure,” which discussed how it was an “open secret” within Southwest Airlines (NASDAQ: LUV) that it desperately needed to modernize its scheduling systems. 

In particular, the article discussed how software shortcomings had “contributed to previous, smaller-scale meltdowns,” and that Southwest Airlines worker unions had warned the Company about the software at various times before the Company’s meltdown over the 2022 holiday season. 

The day before, on December 30, 2021, My Tech Decisions published an article about Southwest Airlines entitled “Southwest Airlines’ Holiday Collapse Due in Part to Outdated IT Systems,” which discussed how the SWAPA had warned that the Company needed to improve its technological infrastructure. 

On December 27, 2022, a CNN article revealed that it also obtained a transcript of a phone call between Southwest Airlines’ COO, Andrew Watterson, and various company employees, in which Watterson stated: “the process of matching up crew members with the aircraft could not be handled by our technology.”

On December 26, 2022, Business Insider published an article about Southwest Airlines entitled “U.S. Department of Transportation says it plans to look into Southwest Airlines following the airline’s unacceptable holiday flight cancellations.” The article highlighted that the Department of Transportation had announced that it would examine “whether cancellations were controllable,” and whether Southwest Airlines was complying with its stated customer service plan, after reports of a lack of prompt customer service in the wake of cancellations.”

If all appeared allegations are true, Investors have reasons to suspect that the Company and its Leaders failed to perform dully their core duties, which led to significant shareholdings' value depreciation.

Southwest Airlines Company

Southwest Airlines’ Holiday Collapse Due to Outdated IT Systems

City of   Pontiac General Employees' Retirement System, et al. v. Grubhub Inc., et al.   

Grubhub (GRUB) agreed to pay $42 million to settle a securities class action lawsuit accusing the Company and its Leaders of multiple suspected felonies.

The Complaint alleged that the Company and its Leaders failed to disclose, among other things, that:

customer orders were actually declining, despite the massive investments the Company had made to spur demand for and use of its platform; 

Grubhub’s new customer additions were generating significantly lower revenues as compared to historic cohorts because these customers were more prone to using competitor platforms; 

Grubhub’s vaunted business model under which it secured exclusive restaurant partnerships had failed, and Grubhub needed to engage in the same aggressive non-partnered sales tactics embraced by its competitors to generate significant revenue growth; 

Grubhub was required to spend substantial additional capital in order to grow revenues and retain market share in the face of heightened competitive dynamics and market saturation, eviscerating the Company’s profitability; 

Grubhub was tracking tens of millions of dollars below its revenue and earnings guidance and such guidance lacked any reasonable basis.

Grubhub (GRUB) agreed to settle with investors to avoid further litigation.

Grubhub Inc

On September 19, 2022, BioLineRx (NASDAQ: BLRX) issued a press release that stated, it had “entered into definitive agreements with several institutional investors for the issuance and sale in a registered direct offering of 13,636,365 of the Company’s American Depositary Shares (ADSs) and warranted to purchase up to an aggregate of 13,636,365 ADSs, at a combined purchase price of $1.10 per ADS and associated warrant..” 

The press release also disclosed that "BioLineRx intends to use the net proceeds to facilitate the commercial launch of Motixafortide in autologous stem cell mobilization for multiple myeloma patients and general corporate purposes, which may include working capital and funding clinical trials.”

On this news, BioLine’s ADS dropped 33%, seriously damaging investors.

Taking all representations and financing decisions into account, Investors have grounds to suspect the Company and its Leaders failed to disclose material facts that consequently lead to shareholdings value depreciations:

the Company was not well financed to develop Motixafortide while at the same time advancing other pipeline programs; 

BioLine would require a loan from Kreos Capital VII Aggregator SCSP in an aggregate principal amount of up to $40 million and then also would require a $15M securities offering to facilitate the commercial launch of Motixafortide.

BioLineRx Ltd

BioLineRx Underpriced $15 mn SPO 

Depository Securities (ADS, ADR, GDR)

U. S. Steel (NASDAQ: X) agreed to pay up to $40 million to settle a securities class action lawsuit to avoid further litigation.

The Complaint alleged that U.S. Steel and its Leaders concealed from the investing public the following facts:

While the Company was implementing its Carnegie Way program, it was focused on cutting costs and was not making investments necessary to position U.S. Steel so that it could respond to improved market conditions; 

Failure to invest in improving capital assets during the industry downturn, in order to report apparent financial improvements, meant that U.S. Steel had higher production costs than its competitors, even in the face of improved pricing, which would negatively impact its financial results; 

Forestalling expensive capital equipment upgrades in order to boost the Company's short-term financial results at the expense of long-term financial performance, leaving U.S. Steel in need of accelerated, costly equipment upgrades that would leave the Company years away from generating improved financial performance; and 

United States Steel Corporation

United States Steel Corporation Securities Litigation

On December 7, 2022, Grizzly Research issued a report about ESS Tech (NASDAQ: GWH) entitled "Caught RedHanded-We Present Evidence that ESS Tech's Biggest Customer is Really an Undisclosed Related Party Without Operations".

The Report mostly was attributed to the announcement on August 11, 2022, where, ESS disclosed a "breakthrough partnership" under which ESS will initially supply 70 of its Energy Warehouse systems to an Australian company, Energy Storage Industries Asia Pacific (ESI). 

The Report notes that the Company deliberately did not disclose its affiliation with a new partner to create a positive news reason for the growth of the company's capitalization. The report also calls into question the viability of the partnership itself from a business point of view.

In January 2022, the founder and president Craig Evans, CEO Eric Dresselhuys, and CFO Moftakhar Amir started selling their shares to the market.

If the facts appeared in the Grizzly report are true, Investors have all reasons to suspect that the Company and its Leaders misled shareholders about multiple material business matters.

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