NEW YORK, July 25, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against NIO, Inc. (NYSE: NIO), Digital World Acquisition Corp. (NASDAQ: DWAC), Generac Holdings, Inc. (NYSE: GNRC), and Cognyte Software Ltd. (NASDAQ: CGNT). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
NIO, Inc. (NYSE: NIO)
On May 5, 2022, NIO provided an update on its status under the Holding Foreign Companies Accountable Act ("HFCAA") amid the increased focus on Chinese companies listed on U.S exchanges. NIO stated that it is aware that the Company has been provisionally identified by the U.S. Securities and Exchange Commission under the HFCAA and understands that it may be a result of the auditor used for its filing of the annual report on Form 20-F. NIO further stated that it has been actively exploring possible solutions to protect the interest of its stakeholders, including a secondary listing of its Class A ordinary shares on the Hong Kong Stock Exchange.
On this news, NIO's American depositary receipt ("ADR") price fell $2.75 per ADR, or 15.17%, to close at $15.38 per ADR on May 5, 2022.
For more information on the NIO investigation go to: https://bespc.com/cases/NIO
Digital World Acquisition Corp. (NASDAQ: DWAC)
On Thursday, March 31, 2022, the SPAC bringing former President Donald Trump's social media platform public, Digital World Acquisition Corp. (NASDAQ: DWAC), fell 5% after a report by Bloomberg that said downloads had decreased significantly.
A report on the site said daily downloads of the app had declined 95% since launching. Trump's Truth Social app launched on the Apple App Store in February 2022.
For more information on the Digital World investigation go to: https://bespc.com/cases/DWAC
Generac Holdings, Inc. (NYSE: GNRC)
On June 22, 2022, Spruce Point Capital Management issued a short report on Generac alleging multiple claims. Spruce Point stated, “Among other alarming findings, we find evidence to suggest a sham revenue transaction at Off Grid Energy, its recent UK acquisition acquired by Pramac’s subsidiary. Even more concerning, we find evidence that to grow its residential solar business and compete against the likes of Tesla, Generac has engaged in a shady transaction with Sunnova, a company we previously profiled for its shoddy financial reporting, which we believe may have been designed to finance its own sales. Generac has also partnered with a large solar distributor named Powerhome (now Pink Energy) which multiple undercover investigations allege it has been misleading customers. Yet, Generac is still promoting the partnership, which we believe to be under FTC investigation.”
On this news, Generac stock fell sharply by $7.23, or 3.3%, during intraday trading, to close at $212.57.
For more information on the Generac investigation go to: https://bespc.com/cases/GNRC
Cognyte Software Ltd. (NASDAQ: CGNT)
On April 5, 2022, Cognyte reported its fourth quarter 2021 financial results, including revenue of $125 million, which was about $3.5 million below the midpoint of the Company's own guidance. Cognyte cited "lower conversions within its product pipeline," along with supply chain issues. During the related conference call, Cognyte's Chief Executive Officer stated that "a longer sales cycle [resulted] in the lower-than-expected bookings in Q4" and acknowledged that management "didn't execute well."
On this news, Cognyte's stock fell $3.63, or 31.1%, to close at $8.03 per share on April 5, 2022, thereby injuring investors.
For more information on the Cognyte investigation go to: https://bespc.com/cases/CGNT
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.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
