NEW YORK, Feb. 11, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Tecnoglass, Inc. (NASDAQ: TGLS), WeWork, Inc. (NYSE: WE), Embark Technology, Inc. (NASDAQ: EMBK), and Affirm Holdings, Inc. (NASDAQ: AFRM). 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.
Tecnoglass, Inc. (NASDAQ: TGLS)
On December 9, 2021, Hindenburg Research published a short-seller report on Tecnoglass, “Cocaine Cartel Connections, Undisclosed Family Deals, And Accounting Irregularities All In One Nasdaq SPAC.” Hindenburg Research detailed a series of alarming red flags about Tecnoglass. Specifically, the report stated, “Our months-long investigation has included review of US and Colombian court records, securities filings, corporate registrations, property records, export records and media reports going back decades. We have identified serious red flags regarding management and numerous undisclosed related party transactions that call the company’s reported financial results into question.”
Following this news, the price of Tecnoglass shares was down over 40% in early morning trading on December 9, 2021.
For more information on the Tecnoglass investigation go to: https://bespc.com/cases/TGLS
WeWork, Inc. (NYSE: WE)
On December 1, 2021, WeWork disclosed in a U.S. Securities and Exchange Commission filing that “[i]n connection with the preparation of the financial statements as of September 30, 2021, WeWork Inc. (the ‘Company') reevaluated its application of Accounting Standards Codification (‘ASC’) 480-10-S99, Distinguishing Liabilities from Equity, to its accounting classification of the Class A common stock subject to possible redemption (the ‘Public Shares’) issued as part of the units sold in the initial public offering by the Company's predecessor, BowX Acquisition Corp. (‘BowX’). The Company had previously classified a portion of the Public Shares in permanent equity. Upon further evaluation, the Company determined that the Public Shares include certain redemption features not solely within the Company's control that, under ASC 480-10-S99, require such shares to be classified as temporary equity in their entirety.” Accordingly, WeWork advised that certain of its previously issued financial statements should not be relied upon and would be restated. In addition, WeWork disclosed that its management has concluded that, that in light of the classification error described above, there was a material weakness in internal control over financial reporting relating to the interpretation and accounting for certain complex features of the Public Shares.”
The stock dropped more than 5% in extended trading after the disclosure.
For more information on the WeWork investigation go to: https://bespc.com/cases/WE
Embark Technology, Inc. (NASDAQ: EMBK)
On January 6, 2022, The Bear Cave published a short report entitled “Problems at Embark Technology (EMBK”) (the “Bear Cave Report”). The Bear Cave Report alleged, among other issues, “that Embark appears to lack true economic substance" and that its “current evaluation appears to be based on puffery rather than actual substance”, noting that “[t]he company holds no patents, has only a dozen or so test trucks, and may be more bark than bite.”
On this news, Embark’s stock price fell $1.37 per share, or 16.75%, to close at $6.81 per share on January 6, 2022.
For more information on the Embark investigation go to: https://bespc.com/cases/EMBK
Affirm Holdings, Inc. (NASDAQ: AFRM)
On December 16, 2021, the Consumer Financial Protection Bureau (the “CFPB”) announced that it has launched an inquiry into the payment service offered by Affirm known as “buy-now, pay-later” (“BNPL”). The CFPB issued an order to Affirm, along with four other companies offering BNPL, seeking information about Affirm’s facilitation of excessive consumer debt, regulatory arbitrage and data harvesting. The CFPB said it is concerned about “accumulating debt, regulatory arbitrage, and data harvesting,” and is seeking data on the risks and benefits of the products. In a statement addressing BNPL services, CFPB Director Rohit Chopra said, “[t]he consumer gets the product immediately but gets the debt immediately too.”
On this news, Affirm’s stock price declined by $11.74 per share, or approximately 10.6%, from $110.98 per share to close at $99.24 per share on December 16, 2021.
For more information on the Affirm Holdings investigation go to: https://bespc.com/cases/AFRM
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
