NEW YORK, April 29, 2020 (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 Mesa Air Group (NASDAQ: MESA), Liberty Oilfield Services, Inc. (NYSE: LBRT), Zoom Video Communications, Inc. (NASDAQ: ZM), and eHealth, Inc. (NASDAQ: EHTH). 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.
Mesa Air Group, Inc. (NASDAQ: MESA)
Class Period: Securities purchased pursuant and/or traceable to Mesa Air Group’s August 2018 initial public offering (the “IPO” or “Offering”).
Lead Plaintiff Deadline: June 1, 2020
In August of 2018, Mesa conducted its IPO in which it sold approximately 11 million shares of common stock for $12.00 per share.
On May 10, 2019, Mesa’s Chief Executive Officer (“CEO”) revealed that over the last 18 months, well before the IPO, Mesa had been “hamstrung by the fact that we had expanded a lot... maintenance became more difficult in terms of qualified maintenance people.”
Then on August 9, 2019, Mesa’s CEO stated that Mesa “did not meet the performance criteria” under its contract with American Airlines, Inc.
Since the IPO, the Company’s stock price has significantly fallen below the IPO price, closing at $3.11 per share on March 30, 2020, or 74% less than its IPO price.
The complaint, filed on April 1, 2020, alleges that the registration statement for the IPO contained false and/or misleading statements and/or failed to disclose that: (1) Mesa’s operational performance was poor and below industry standards; (2) Mesa had a shortage of qualified mechanics and maintenance personnel; (3) Mesa had an inadequate number of spare aircraft and parts; (4) Mesa did not have a strong track record of reliable performance; (5) then-existing “risks” had already materialized; (6) Mesa knew of undisclosed adverse trends and uncertainties at the time of the IPO; and (7) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
For more information on the Mesa Air Group class action go to: https://bespc.com/mesa
Liberty Oilfield Services, Inc. (NYSE: LBRT)
Class Period: Securities purchased pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Liberty Oilfield’s January 17, 2018 initial public offering (the “IPO” or “Offering”).
Lead Plaintiff Deadline: June 2, 2020
On January 17, 2018, Liberty Oilfield held its IPO, issuing approximately 14.6 million shares of Class A stock to the investing public at $17.00 per share, pursuant to the Registration Statement.
By the commencement of this action, Liberty Oilfield’s shares have traded significantly below its IPO price. As a result, investors were damaged.
The complaint, filed on April 3, 2020, alleges that the Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) there was an oversupply in the hydraulic fracturing services market; (2) the Company’s pricing power was weak; (3) the Company’s services were not increasing and its competition was not decreasing; and (4) as a result, defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
For more information on the Liberty Oilfield class action go to: https://bespc.com/LBRT
Zoom Video Communications, Inc. (NASDAQ: ZM)
Class Period: April 18, 2019 to April 6, 2020
Lead Plaintiff Deadline: June 8, 2020
On March 22, 2019, Zoom filed a registration statement on Form S-1 with the SEC in connection with its initial public offering (“IPO”), which, after several amendments, was declared effective by the SEC on April 17, 2019 (the “Registration Statement”).
On April 18, 2019, Zoom filed a prospectus on Form 424B4 with the SEC in connection with its IPO, which purported to provide information necessary for investors to consider before partaking in its IPO and purchasing the Company’s newly publicly-issued stock (collectively with the Registration Statement, the “Offering Documents”).
The truth about the deficiencies in Zoom’s software encryption began to come to light as early as July 2019. However, due in large part to the Company’s obfuscation, it was not until the COVID-19 pandemic in March and April of 2020, with businesses and other organizations increasingly relying on Zoom’s video communication software to facilitate remote work activity as governments increasingly implemented shelter-in-place orders, that the truth was more fully laid bare in a series of corrective disclosures. As it became clear through a series of news reports and admissions by the Company that Zoom had significantly overstated the degree to which its video communication software was encrypted, and organizations consequently prohibited their employees from utilizing Zoom for work activities, the Company’s stock price plummeted, to close at $122.94 on April 6, 2020.
The Complaint, filed on April 7, 2020, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Zoom had inadequate data privacy and security measures; (ii) contrary to Zoom’s assertions, the Company’s video communications service was not end-to-end encrypted; (iii) as a result of all the foregoing, users of Zoom’s communications services were at an increased risk of having their personal information accessed by unauthorized parties, including Facebook; (iv) usage of the Company’s video communications services was foreseeably likely to decline when the foregoing facts came to light; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
For more information on the Zoom class action go to: https://bespc.com/ZM
eHealth, Inc. (NASDAQ: EHTH)
Class Period: March 19, 2018 to April 7, 2020
Lead Plaintiff Deadline: June 8, 2020
On April 8, 2020, analyst Muddy Waters Research issued a report stating that the Company uses “highly aggressive accounting” to mask “a significantly unprofitable business.” Muddy Waters wrote that “[a]fter ASC 606 went into effect,” eHealth’s “member churn . . . skyrocketed,” and concluded “that EHTH is pursuing low quality, lossmaking growth while its LTVs are based on lower churn, pre-growth cohorts.” Further, Muddy Waters charged eHealth’s management with “running a massive stock promotion.”
On this news, eHealth’s stock price fell approximately 12%, to close at $103.20 per share.
The complaint, filed on April 8, 2020, alleges that eHealth misrepresented and/or failed to disclose to investors: (1) its highly aggressive accounting and modeling assumptions; (2) its skyrocketing rate of member churn, resulting from eHealth’s pursuit of low quality, lossmaking growth; (3) its reliance on direct response television advertising, which attracts an unprofitable, high churn enrollee; and (4) as a result of the foregoing, defendants’ public statements were materially false and misleading at all relevant times.
For more information on the eHealth class actin go to: https://bespc.com/EHTH
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. 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.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com