Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Ruhnn Holding, Sonim Technologies, The Chemours Company, and Third Coast Midstream
11/27/2019 | 02:01pm EST
NEW YORK, Nov. 27, 2019 (GLOBE NEWSWIRE) -- 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 Ruhnn Holding Limited (NASDAQ: RUHN), Sonim Technologies, Inc. (NASDAQ: SONM), The Chemours Company (NYSE:CC), and Third Coast Midstream f/k/a American Midstream Partners, LP. 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.
Ruhnn Holding Limited (NASDAQ: RUHN)
Class Period: Securities purchased pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Ruhnn’s April 3, 2019 initial public stock offering (the “IPO” or the “Offering”).
Lead Plaintiff Deadline: December 6, 2019
The complaint, filed on September 8, 2019, alleges that the Registration Statement contained false and/or misleading statements and/or failed to disclose that: (1) at the time of the IPO, the number of Ruhnn’s online stores had declined by nearly 40%; (2) at the time of the IPO, the number of Ruhnn’s full-service Key Opinion Leaders had declined by nearly 44%; (3) as a result, the Company’s net revenues derived from its full-service segment had declined by 46% on a sequential basis; and (3) as a result, defendants’ statements about Ruhnn’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Ruhnn’s stock is currently trading at $6.59 per share, an over 47% decrease from its $12.50 IPO price.
Class Period: Securities purchased pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Sonim’s May 2019 initial public stock offering (the “IPO” or the “Offering”).
Lead Plaintiff Deadline: December 6, 2019
In May 2019, Sonim completed its initial public offering (“IPO”) in which it sold approximately 4.07 million shares at a price of $11.00 per share.
On September 10, 2019, Sonim disclosed that it expected fiscal 2019 net revenues to be flat or slightly below 2018 net revenues of $135.7 million, citing “significant delays” in the launch of new products as well as software issues related to these new introductions. Moreover, the Company disclosed that its CFO James Walker was resigning.
On this news, the Company’s share price fell $3.30, or nearly 47%, to close at $3.76 per share on September 10, 2019.
Currently, Sonim stock is trading at $2.87 per share, a 73% decline from the $11 per share IPO price.
The complaint, filed on October 7, 2019, alleges that 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, defendants failed to disclose to investors: (1) that the Company’s XP8 was experiencing material software challenges; (2) that these software issues adversely affected how the device’s Qualcomm chipset, which supported Band 14 access, connected to AT&T’s carrier network configuration; (3) that the Company’s XP5 and XP3 devices were experiencing material software defects that adversely affected their optimization with certain accessories; (4) that, as a result, the Company was reasonably likely to delay the launch of new products; (5) that, as a result of the foregoing, the Company’s financial results would be materially and adversely impacted; and (6) 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.
Chemours is a spin-off of the Performance Chemicals division of industrial conglomerate E.I. du Pont de Nemours and Company ("DuPont"). Chemours began trading as its own public company in 2015. The spin-off was completed pursuant to a Separation Agreement that required Chemours to protect DuPont for historic environmental liabilities. The action arises from Defendants' misrepresentations and omissions relating to Chemours' statements and accruals for environmental liabilities arising from its decades-long production, use, and discharge of chemicals manufactured by the Performance Chemicals division, including perfluoroalkyl and polyfluoroalkyl substances ("PFAS")—toxic chemicals that have become the basis for environmental regulatory actions, prosecutions, personal injury lawsuits, and extensive remediation efforts.
The complaint, filed on October 8, 2019, alleges that, throughout the Class Period, defendants misled investors by representing that Chemours had appropriately accounted and accrued reserves for its environmental liabilities, that the possibility of costs exceeding accrued amounts was "remote," and that, in any event, additional costs would not be material. Chemours also assured investors that its "policies, standards and procedures are properly designed to prevent unreasonable risk of harm to people and the environment," and that its "handling, manufacture, use and disposal of hazardous substances are in accordance with applicable environmental laws and regulations." As a result of these misrepresentations, Chemours shares traded at artificially inflated prices throughout the Class Period.
A series of disclosures beginning on May 6, 2019, culminating on August 1, 2019 when the Company revealed the truth about its environmental practices, and that Chemours’ liabilities were far greater than the Company had represented. These disclosures included the June 28, 2019 unsealing of a complaint Chemours had filed under seal against DuPont on May 13, 2019, in which Chemours made detailed allegations that its spin-off from DuPont was part a deliberate plan by DuPont to rid itself of significant exposures incurred through decades of PFAS discharge and to unload that responsibility onto Chemours. These disclosures triggered sharp declines in the price of Chemours stock. Chemours shares price fell from $34.18 per share on May 3, 2019 to close at $14.69 per share on August 2, 2019.
Third Coast Midstream f/k/a American Midstream Partners, LP
Class Period: All former owners of American Midstream stock who sold their stock, and were damaged thereby.
Lead Plaintiff Deadline: December 9, 2019
American Midstream is a growth-oriented master limited partnership formed to own, operate, develop, and acquire a diversified portfolio of midstream energy assets. At all relevant times, American Midstream’s general partner was American Midstream GP, LLC (the “General Partner”). The General Partner was solely responsible for supporting and conducting the business operations of American Midstream.
The complaint, filed on October 10, 2019, alleges that ArcLight Capital Partners, LLC (“ArcLight”) was the Company’s majority stockholder and had control over the General Partner. Therefore, ArcLight ensured that the majority of American Midstream’s Board of Directors were all affiliated with ArcLight, and had the ability to control the Company’s quarterly distribution.
On July 27, 2018, American Midstream declared a 75 percent reduction in the Company’s quarterly common stock distribution. As a result of this reduction, American Midstream’s stock price declined over 42 percent, falling precipitously from $11.55 to $6.60 on July 27, 2018.
Then, on December 31, 2018, American Midstream reported that because of an amendment to its credit facility agreement, it did not expect to make any distributions to its stock holders in the upcoming fourth quarter of 2018, and would continue to withhold said distributions until its consolidated total leverage ratio was reduced. On this news, American Midstream’s stock declined $1.30, or 30 percent, closing at a price of $3.03 per share on December 31, 2018.
On March 18, 2019, American Midstream publicly disclosed it had entered into a merger agreement with a subsidiary of ArcLight pursuant to which American Midstream stockholders would receive $4.50 per share. On July 23, 2019, American Midstream announced the closing of the merger.
Therefore, as a result of the distribution cuts put in place by virtue of ArcLight’s control over the Company, American Midstream minority stockholders received approximately 60 percent less consideration for their shares than the common stock price immediately prior to the distribution cut on July 27, 2018.
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