NEW YORK, Jan 22, 2020 (GLOBE NEWSWIRE via COMTEX) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that class action lawsuits have been commenced on behalf of stockholders of HEXO Corp. /zigman2/quotes/206508254/composite HEXO -2.08% , Merit Medical Systems, Inc. /zigman2/quotes/209183774/composite MMSI -2.73% , Net 1 UEPS Technologies, Inc. /zigman2/quotes/202816155/composite UEPS -2.17% , and X Financial /zigman2/quotes/209424360/composite XYF -4.70% . 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.
HEXO Corp. /zigman2/quotes/206508254/composite HEXO -2.08%
Class Period: January 25, 2019 to November 15, 2019
Lead Plaintiff Deadline: January 27, 2020
Through a series of disclosures occurring between October 4, 2019 and November 15, 2019, the Company announced that it was producing cannabis in a section of its Niagara facility that was not properly licensed with Health Canada. As a result of these disclosures, the value of HEXO stock has consistently decreased, damaging investors.
The complaint, filed on November 26, 2019, 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, the Complaint alleges that defendants failed to disclose to investors that: (1) HEXO's reported inventory was misstated as the Company was failing to write down or write off obsolete product that no longer had value; (2) HEXO was engaging in channel-stuffing in order to inflate its revenue figures and meet or exceed revenue guidance provided to investors; (3) HEXO was cultivating cannabis at its facility in Niagara, Ontario that was not appropriately licensed by Health Canada; 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.
For more information on the HEXO class action go to: https://bespc.com/hexo
Merit Medical Systems, Inc. /zigman2/quotes/209183774/composite MMSI -2.73%
Class Period: February 26, 2019 to October 30, 2019
Lead Plaintiff Deadline: February 3, 2020
On July 25, 2019, Merit announced disappointing second quarter 2019 financial results and cut its fiscal 2019 sales and earnings per share outlook. Defendants attributed these reductions to a variety of factors, including "slower than anticipated conversion and uptake of acquired products."
On this news, the Company's stock price declined more than 25%.
Then, on October 30, 2019, the Company announced its third quarter 2019 financial results, reporting adjusted earnings per share well below consensus estimates, and slashed fiscal 2019 revenue and earnings per share guidance by 20%. Furthermore, defendants stated that, in addition to the fiscal 2019 guidance cut, "2020 guidance [was] off the table" until they had reasonable confidence in their forecasting ability, and reported significant operational issues in all aspects of Merit's business, conceding that many of these failures were due to their "own overestimation and forecasting."
Following these disclosures, Merit's stock price declined more than 29%, to close at $20.66 per share on October 31, 2019.
The complaint, filed on December 3, 2019, alleges that throughout the Class Period defendants made false and misleading statements and/or failed to disclose adverse information concerning Merit's business and prospects. Specifically, defendants failed to disclose that: (a) the integrations of Cianna and Vascular Insights, including their products, sales people, and R&D facilities, had caused operational disruptions and reduced sales and were months behind schedule; (b) sales of acquired company products had slowed substantially due to pre-acquisition pipeline fill, in particular for Vascular Insights products which, as late as July 2019, had zero orders during fiscal 2019; and (c) in light of the foregoing, the Company's reported financial guidance for fiscal 2019 and 2020 was made without a reasonable basis. As a result of defendants' material misrepresentations and omissions, Merit stock traded at artificially inflated prices of more than $62 per share.
For more information on the Merit Medical class action go to: https://bespc.com/mmsi
Net 1 UEPS Technologies, Inc. /zigman2/quotes/202816155/composite UEPS -2.17%
Class Period: September 12, 2018 to November 8, 2018
Lead Plaintiff Deadline: February 3, 2020
On November 8, 2018, UEPS filed a Form 8-K with the SEC under item 4.02(a) for non-reliance on previously issued financial statements.
On this news, the price of the Company's stock price declined $2.16, from a closing price of $7.00 per share on November 8, 2018 to a closing price of $4.84 per share on November 9, 2018, a drop of approximately 30 percent.