Securities class action lawsuits resulted in $7.6B settlements in 2022, with huge payouts from Twitter, Teva, Facebook, and Blackberry.

Investors recovered $7.6B in 2022 | How to Fight Losses Back

Investors Around The Globe Recovered $7.6B in 2022 | How to Fight Losses Back?

Public

FTX account holders seeking potential compensation from Binance and its CEO, claiming FTX was intentionally crashed to monopolize the crypto market.

Clients of bankrupt FTX brought a lawsuit against Binance and its CEO Changpeng Zhao, accusing Zhao of issuing statements that hastened the demise of FTX in order to remove a competitor and strengthen Binance's hold on the crypto market. 

The case alleges that Zhao's actions violated federal securities laws and California's Unfair Competition Law. 

Binance Coin

Fraud

Price manipulation

Malpractice

Directors

Management

Shareholder

Influencer

FTX Clients vs. Binance & Zhao over Crypto Crash

binance-ftx-lawsuit

Crypto Asset

Long

Wells Fargo has reached a $1 billion settlement with investors following allegations that the bank deceived them regarding its regulatory compliance in the wake of the fraudulent sales scandal. 

The federal lawsuit accused $WFC of making "materially false and misleading statements" about its adherence to consent orders issued by federal regulators regarding past practices. Wells Fargo has been subject to regulatory penalties since the revelation in 2016 that the bank had opened millions of unauthorized customer accounts.

To avoid protracted litigation, Wells Fargo has agreed to settle with shareholders, reaching a substantial $1 billion resolution.

Any Investor who purchased $WFC between February 2018 and March 2020 may be eligible for a payout.

For questions please contact George Scott - gs@11thestate.com

Wells Fargo & Company

Misleading Statements

Failure to Disclose

Omissions

Wells Fargo (WFC) $1 Billion Shareholder Settlement

wells-fargo-settlement

Stocks

PureCycle disclosed the Ironton Facility power outage after a month of keeping investors uninformed.

$PCT fell 18% and lost over $220M of its shareholder value. 

Investors suspect PCT of failing to disclose the incident and pending risks, which led to investor losses after the truth appeared.

On September 13, 2023, PureCycle (PCT) disclosed that its Ironton Facility experienced a plant power outage on August 7, 2023, which required to halt its operations. 

PCT disclosed that it replaced a seal that purportedly failed as a result of the power outage and initiated facility restart procedures on September 11, 2023.

On this news, $PCT fell 18% and lost over $220 million of its market capitalization, damaging shareholders. 

Now, Investors have reasons to suspect PCT failing to disclose that the Ironton Facility experienced a plant power outage, and there was a risk of additional failures, which led to shareholder losses after the truth appeared.

Purecycle Technologies Holdings Corp

PureCycle Technologies (PCT) Ironton Power Outage Case

purecycle-investor-lawsuit

Kraft Heinz (KHC) settles $450 million with Investors.

In 2015, Kraft Foods Group and H.J. Heinz Company merged to form Kraft Heinz, a food and beverage company with a significant presence in the industry. However, in April 2019, a group of investors filed a lawsuit against Kraft Heinz and 3G Capital Partners, a Brazilian private equity firm that held a major stake in the Company, alleging that the companies had misled investors about the company's financial position and growth prospects.

The investors claimed that Kraft Heinz and 3G Capital Partners made false and misleading statements about the sustainability of the company's margins and the success of cost-cutting strategies after the merger. They alleged that the company's organic sales growth was declining and that Kraft Heinz was relying on acquisitions to maintain revenue growth. Furthermore, they claimed that the companies did not disclose the extent to which they were cutting back on marketing and research and development expenses to achieve their profit margins.

After years of litigation, Kraft Heinz and 3G Capital Partners have reached a $450 million settlement agreement with plaintiffs in a class-action lawsuit alleging securities fraud stemming from the 2015 merger of Kraft and Heinz.

Persons entitled to the payout are those who: 

Purchased or otherwise acquired Kraft Heinz common stock or call options on Kraft Heinz common stock, 

Purchased or otherwise acquired Call Options on Kraft Heinz common stock, or

Sold Put Options on Kraft Heinz common stock, 

during the Class Period and were damaged thereby.

Kraft Heinz Co

Financial Misrepresentation

Other

Kraft Heinz (KHC) $450M Shareholder Settlement

kraft-heinz-settlement

WSJ revealed that the regulator suspended the Medical Properties and Prospect transaction in July 2023. However, MPT didn't disclose it in recent reports. 

On this news, $MPW fell 7.6% losing $340M of its shareholder value. 

Investors suspect MPT hid the transaction suspension, resulting in losses for them once the truth was revealed.

On August 18, 2023, the Wall Street Journal reported that the recapitalization transaction between Medical Properties Trust and Prospect had been halted since July 20, 2023, following an order from a regulatory agency in California.

Meanwhile, MPT did not reveal the regulatory order when announcing its Q2 results on August 8, 2023, or in the quarterly report submitted to the SEC on August 9, 2023.

On this news, $MPW fell 7.6% and lost over $340 million of its market capitalization, damaging shareholders.

On May 23, 2023, MPT announced a transaction pursuant to which it would take an equity stake in Prospect Medical’s managed care business in lieu of cash payment by Prospect of hundreds of millions of dollars in outstanding loans, and unpaid rent and interest owed to MPT. 

On August 8, 2023, MPT stated that the proposed transaction with Prospect had reduced losses by $68 million based on the receipt of an equity stake in Prospect’s managed care business in lieu of payment of contractually owed rent and interest.

Now, investors have reasons to suspect MPT hid the transaction suspension, resulting in losses for them once the truth was revealed.

Medical Properties Trust Inc

Investment Bank

Service Provider

Medical Properties Trust (MPW) Undisclosed Deal Suspension Case

medical-properties-investor-lawsuit

Robert C. Skaggs, Jr. and Stephen P. Smith settle $79 million with investors in Columbia Pipeline Group, Inc. Merger Litigation.

All public stockholders of Columbia Pipeline Group, Inc. at any time from July 6, 2015, through and including July 1, 2016, including any and all of their respective successors-in-interest, successors, predecessors-in-interest, predecessors, assigns, and transferees, may be entitled to a payout.

Columbia Pipeline Group

Breach of Fiduciary duty

Columbia Pipeline Group $79M Merger Settlement

columbia-pipeline-merger-settlement

Grizzly Research accused Archer Aviation of misguiding investors about flight testing and sophistication of eVTOL aircraft;

$ACHR fell 6.4% and lost $97M of market cap, damaging shareholders;

Investors suspect that Archer misled them about true business situation.

On August 16, 2023, Grizzly Research released a report on Archer, alleging that Archer Aviation, Inc. (ACHR) relies on heavily edited videos of earlier flights to misrepresent the amount of flight testing and the sophistication of Archer’s eVTOL aircraft.

Finally, the Grizzly Report also alleged that Archer misled about the timelines for:

Its lab and manufacturing facility in San Jose becoming operational;

Securing FAA certification of its prototype aircraft.

On this news, $ACHR fell 6.46% and lost $97 million of its market capitalization, damaging shareholders.

Since its inception, Archer consistently emphasized its eVTOL aircraft design, profitable business partnerships, and progress in securing FAA certification for mass production.

Archer stated that it “optimizes its eVTOL aircraft design for both manufacturing and certification by using advancements in key enabling technologies” and “secured and strengthened excellent relationships with global leaders and innovators, such as United Airlines, Stellantis, Reef, and the U.S. Air Force.”

Moreover, the Company claimed that “by bringing together a mix of talent with both eVTOL and traditional commercial aerospace backgrounds, it is building a team that will allow it to move through the design, development, and certification of its eVTOL aircraft with the FAA in an efficient manner.”

Taking all representations into account, investors have reasons to suspect Archer of misleading about the amount of flight testing, the sophistication of Archer’s eVTOL aircraft and profitability of its business partnerships.

Archer Aviation Inc

Archer Aviation, Inc. (ACHR) eVTOL Business Misrepresentation Case 

archer-investor-lawsuit

Myriad Genetics supposedly misled about their GeneSight test's development and the company's financial situation;

$MYGN fell 42.76% and lost $1.56B of its market cap, damaging investors;

Myriad Genetics agreed to pay $77.5M to investors to resolve the claims. 

On August 13, 2019, Myriad announced its disappointing financial results for the Q4 and the full year 2019. On the same day, Myriad also disclosed that “the FDA had requested changes to the GeneSight test offering”, and that Myriad had “been in ongoing discussions with the FDA regarding its request.” 

On this news, $MYGN fell 42.76% and lost $1.56B of its market capitalization, damaging investors. 

Later, Myriad disclosed a $18M overstatement of revenue from its hereditary cancer tests. And finally, Myriad shocked investors by announcing that the CEO was suddenly leaving the company. 

It is claimed that $MYGN is accused of making false statements and neglecting to reveal the following details:

Myriad falsely represented the level of evidence supporting the effectiveness of GeneSight;

The test's accuracy was based on studies that had significant flaws in their methodology;

Myriad also left out important information about the FDA's investigation into the test.  

Any Investor who purchased $MYGN between August 2017 and February 2020 may be eligible for a payout.

Myriad Genetics Inc

Myriad Genetics (MYGN) $77.5M GeneSight Case Settlement

myriad-genetics-settlement

On August 2, 2023, Generac (GNRC) announced revised downward guidance for 2023 due to “weakness in residential products.” 

The Company blamed the downturn on a “softer consumer spending environment” which led to weaker-than-expected sales of residential units. 

On this news, $GNRC fell by over 24% and lost $2.3 billion of its market capitalization, seriously damaging investors.

Taking all representations into account, investors may have reasons to suspect Generac of misleading about true business prospects.

Trending Cases