Bragar Eagel & Squire, P.C. Reminds Investors That Class
NEW YORK, June 16, 2021 (GLOBE NEWSWIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been initiated on behalf of the shareholders of Provenion Bio, Inc. (NASDAQ: PRVB.) Washington Prime Group, Inc. (NYSE: WPG), Virgin Galactic, Inc. (NYSE: SPCE), and RLX Technology, Inc. (NYSE: RLX). Shareholders have until the following deadlines to apply to the court as the main plaintiff. Further information on the individual cases can be found at the link provided.
Prevention Bio, Inc. (NASDAQ: PRVB)
Course period: November 2, 2020 to April 8, 2021
Lead plaintiff deadline: July 20, 2021
On April 8, 2021, Prevention Bio published a press release “announce”[ing] that the company will notify the company on April 2, 2021 [FDA]which states that under the ongoing review of the company [BLA] for teplizumab to delay or prevent clinical [T1D], the FDA has identified deficiencies that currently preclude a discussion of labeling and post-market requirements / obligations. “
Following the news, Provention’s share price fell $ 1.73 per share, or 17.78%, to close at $ 8.00 per share on April 9, 2021.
The lawsuit alleges that throughout the class action period, defendants made false and misleading statements and failed to disclose that: (i) Prevention Bio’s teplizumab BLA, as submitted, was deficient and would need additional data to help the FDA Get approval; (ii) accordingly, Prevention Bio’s Teplizumab BLA lacked the conclusive support that was accepted by investors; (iii) Prevention Bio had thus overestimated the approval prospects for teplizumab BLA and thus the schedule for the commercialization of teplizumab; and (iv) as a result, Prevention Bio’s public statements at all relevant times have been materially false and misleading.
For more information on Prevention Bio’s class action lawsuit, please visit: https://bespc.com/cases/PRVB
Washington Prime Group, Inc. (NASDAQ: WPG)
Course period: November 5, 2020 to March 4, 2021
Lead plaintiff deadline: July 23, 2021
On February 16, 2021, WPG announced that its operational partnership, Washington Prime Group, LP (“WPG LP”), “an interest payment of February 15, 2021 of $ 23.2 million due 2024” and that “WPG LP has a grace period of 30 days to pay interest before such non-payment constitutes a “default.” . . Maturity and maturity of such debt, which would lead to a mutual default in payment with respect to part of the other liabilities of WPG LP or the company. “
As a result of this news, the company’s share price fell $ 4.59, or 38%, to close at $ 7.49 per share on February 16, 2021 with unusually high volume.
Then, on March 4, 2021, Bloomberg reported that WPG is “preparing a possible bankruptcy filing as time runs out to avert a default after skipping an interest payment on its debt, according to people who know the plans.”
As a result of this news, the company’s share price fell $ 3.77, or 60%, to close at $ 2.51 per share on March 4, 2021 with unusually high volume.
The lawsuit filed in this class action alleges that during the class action period the defendants made materially false and / or misleading statements and failed to disclose material adverse facts about the business, operations and prospects of the company. In particular, Defendants failed to notify investors of the following: (1) that WPG’s financial condition deteriorated significantly; (2) that there was, as a result, significant uncertainty about the Company’s ability to meet its capital structure obligations when due; and (3) that, based on the foregoing, Defendants’ positive statements about the business, operations, and prospects of the Company were materially misleading and / or improperly based.
For more information on Washington Prime Group’s class action lawsuit, please visit: https://bespc.com/cases/WPG
Virgin Galactic Holdings, Inc. (NYSE: SPCE)
Course period: October 26, 2019 to April 30, 2021
Lead plaintiff deadline: July 27, 2021
On October 25, 2019, post-market, Virgin Galactic was acquired through a business combination between Social Capital Hedosophia Holdings Corp. (“SCH”), a purpose acquisition company (“SPAC”) and the then private predecessor of the company (“Legacy Virgin Galactic”), whereupon SCH changed its name to “Virgin Galactic Holdings, Inc.”. and its ticker symbol on “SPCE” (the “Business Combination”).
On April 12, 2021, the SEC issued guidance advising that SPAC warrants, which are instruments that allow investors to purchase additional shares at a fixed price, for many SPAC transactions that were previously accounted for , may need to be classified as liabilities rather than equity as equity in these transactions.
During the class action period, defendants made essentially false and misleading statements about the company’s business, operational and compliance policies. In particular, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the SCH warrants were to be treated as liabilities rather than shares for accounting purposes; (ii) Virgin Galactic had inadequate disclosure controls and procedures and internal controls over financial reporting; (iii) as a result, the Company has not properly accounted for SCH warrants outstanding at the time of the business combination; and (iv) as a result, the Company’s public statements at all relevant times have been materially false and misleading.
On April 30, 3021, post-market, Virgin Galactic announced “that the release of its financial results for the first quarter of 2021 has been postponed until the US markets close on Monday, May 10, 2021, a conference call to review the results and provide a business update that day at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The company is postponing its reporting based on the latest statement from the [SEC] on April 12, 2021 in relation to the accounting treatment of warrants issued by Purpose Acquiring Companies (the ‘SEC Statement’). “The news release said that” after reviewing the SEC statement and consulting with its Consultants will present the consolidated financial statements for the financial year ending December 31, 2020, contained in its annual report on Form 10-K, solely on the accounting treatment of the warrants of Social Capital Hedosophia Holdings Corp. outstanding at the time of the business combination on October 25, 2019. The Company expects to submit the adjusted financials prior to the new conference call date and estimates that incremental non-operating, non-cash expenses will be recognized for each of the fiscal years ended December 31, 2020 and December 31, 2019. “
In light of the news, Virgin Galactic’s stock price fell $ 2.01 per share, or 9.07%, to close at $ 20.14 per share on May 3, 2021.
For more information on Virgin Galactic’s class action lawsuit, please visit: https://bespc.com/cases/SPCE
RLX Technology, Inc. (NYSE: RLX)
Class period: According to and / or traceable to the IPO on January 22, 2021
Lead plaintiff deadline: August 9, 2021
RLX Technology claims to be the “No. 1 Branded E-Vapor Company in China “which it also claims is its” largest potential market “. In January 2021, defendants issued approximately 116.5 million ADS at $ 12 per ADS to the investing public as part of RLX Technology’s initial public offering, generating gross proceeds of approximately $ 1.4 billion.
On or around March 22, 2021, the Chinese Ministry of Industry and Information Technology published a draft regulation confirming that e-cigarettes and new tobacco products will be regulated in a similar way to traditional tobacco offerings. Because of this news, RLX Technology’s ADS price fell nearly 48%.
Then, on June 2, 2021, RLX Technology released its financial results for the first quarter of 2021, which show net sales growth of just 48% quarter over quarter and a forecast for the second quarter that suggests gross margin is only “stable would stay ”. Because of this news, RLX Technology’s ADS price fell another 9%. At the start of this move, RLX Technology’s ADSs were trading more than 32% below the initial public offering price.
The RLX Technology class action alleges that the registration statement contained false information about material facts and omitted material facts that are both required and necessary by the applicable regulations in order not to mislead the information provided. RLX Technology’s class action lawsuit alleges, among other things, that the registration statement misrepresented and omitted that, at the time of the IPO, RLX Technology knew (or had information that was foreseeable) that China was adopting a national standard for e-cigarettes that would bring them in line with regular cigarette regulations. RLX Technology’s class action lawsuit also alleges that RLX Technology knew its reported financial results were not nearly as rosy as the registration statement made it appear, nor did it indicate future results. By omitting these facts and showing, for example, that regulatory risk is only a conditional possibility, RLX Technology’s class action lawsuit alleges that investors were unable to adequately assess the value of the shares offered in connection with the IPO and therefore their ADSs were bought without essential information and to their detriment.
For more information on the RLX class action lawsuit, please visit: https://bespc.com/cases/RLX
About Bragar Eagle & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents private and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.
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Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.