NEW YORK, March 21, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Pulse Biosciences, Inc. (NASDAQ: PLSE), SunPower Corporation (NASDAQ: SPWR), Butterfly Network, Inc. (NYSE: BFLY), and GWG Holdings, Inc. (NASDAQ: GWGH). 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.
Pulse Biosciences, Inc. (NASDAQ: PLSE)
Class Period: January 12, 2021 – February 7, 2022
Lead Plaintiff Deadline: April 18, 2022
In October 2020, Pulse initiated its investigational device exemption (“IDE”) study to evaluate the treatment of sebaceous hyperplasia lesions using the CellFX System.
On February 8, 2022, before the market opened, Pulse announced that the U.S. Food and Drug Administration (“FDA”) concluded there was insufficient clinical evidence to support the Company’s 510(k) submission to expand the label for the CellFX System to treat sebaceous hyperplasia. Among other things, the FDA found “that the Company had not met the primary endpoints of the sebaceous hyperplasia FDA-approved IDE study.”
On this news, the Company’s share price fell $3.74, or over 34%, to close at $7.12 per share on February 8, 2022, on unusually heavy trading volume.
The complaint filed in this class action 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, Defendants failed to disclose to investors: (1) that the IDE study evaluating the use of the CellFX System to treat sebaceous hyperplasia lesions failed to meet its primary endpoints; (2) that, as a result, there was a substantial risk that the FDA would reject Pulse’s 510(k) submission seeking to expand the label for the CellFX System to treat sebaceous hyperplasia lesions; and (3) 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 Pulse class action go to: https://bespc.com/cases/PLSE
SunPower Corporation (NASDAQ: SPWR)
Class Period: August 3, 2021 – January 20, 2022
Lead Plaintiff Deadline: April 18, 2022
On January 20, 2022, SunPower announced that it had “identified a cracking issue that developed over time in certain factory-installed connectors.” The Company “expects approximately $27 million of supplier-quality related charges in fourth quarter 2021 and approximately $4 million in the first quarter of 2022” to replace the faulty connectors.
On this news, the Company’s share price fell $3.22, or 16.9%, to close at $15.80 per share on January 21, 2022, on unusually heavy trading volume.
The complaint filed in this class action 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, Defendants failed to disclose to investors: (1) that certain connectors used by SunPower suffered from cracking issues; (2) that, as a result, the Company was reasonably likely to incur costs to remediate the faulty connectors; (3) that, as a result of the foregoing, SunPower’s financial results would be adversely impacted; 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 SunPower class action go to: https://bespc.com/cases/SPWR
Butterfly Network, Inc. (NYSE: BFLY)
Class Period: February 12, 2021 merger; February 16, 2021 – November 15, 2021
Lead Plaintiff Deadline: April 18, 2022
According to the complaint, on February 12, 2021, Longview shareholders voted to approve the merger with Butterfly. On February 16, 2021, Longview changed its name to Butterfly Network, Inc. and began trading on the NYSE.
The complaint alleges that throughout the class period, defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Additionally, the Proxy and defendants failed to disclose that: (i) Butterfly had overstated its post-merger business and financial prospects; (ii) Butterfly’s financial projections failed to take into account the COVID-19 pandemic's broad consequences, which included healthcare logistical challenges, and medical personnel fatigue; and (iii) Butterfly's gross margin levels and revenue projections were less sustainable than the Company had represented.
On November 15, 2021, Butterfly announced its financial results for the third quarter of 2021. In a press release, Butterfly advised, among other things, that the Company’s total gross margin for the quarter was negative 35% and that the Company expected its revenue for 2021 to be $60-$62 million, significantly below the guidance it gave out in Q1 of $76-80 million. On an earnings call the same day, Butterfly’s CEO stated that the Company's results were impacted by “healthcare logistical challenges, and doctor, nurse, and medical technician fatigue concurrent with COVID conditions and its broad consequences.”
On this news, Butterfly’s stock price fell $1.08, or 12.55%, to close at $7.52 per share on November 15, 2021.
For more information on the Butterfly class action go to: https://bespc.com/cases/BFLY
GWG Holdings, Inc. (NASDAQ: GWGH)
Class Period: June 3, 2020 Bond Offering
Lead Plaintiff Deadline: April 19, 2022
On January 18, 2022, GWG disclosed that its Annual Report will likely be filed “later than the March 31, 2022 due date” because of “the recently disclosed decision of its independent registered public accounting firm to decline to stand for reappointment.” The Company further disclosed that it “did not make the January 15, 2022 interest payment of approximately $10.35 million and principal payments of approximately $3.25 million with respect to its L Bonds” product and that it elected to “voluntarily suspend its L Bonds sales effective as of January 10, 2022.” On this news, GWG’s stock price fell $2.17 per share, or 27.7%, to close at $5.65 per share on January 18, 2022.
Then, on January 27, 2022, The Wall Street Journal reported that GWG received a subpoena from the Securities and Exchange Commission requesting documents. The article also stated that an attorney representing multiple L Bonds investors said his clients are retail investors who bought the bonds after hearing the products were safe and would offer a comfortable income stream for their retirement, but that “they were shocked to learn that their money was used to pay old investors while the company has been under SEC investigation.”
Following this news, GWG’s stock dropped over 20% during intraday trading on January 27, 2022.
For more information on the GWG class action go to: https://bespc.com/cases/GWGH
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
