NEW YORK, Oct. 02, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. reminds investors that class action lawsuits have been commenced on behalf of stockholders of Eldorado Resorts, Inc. (NASDAQ: ERI), Sundial Growers, Inc. (NASDAQ: SNDL), Tencent Music Entertainment Group (NYSE: TME), and Myriad Genetics, Inc. (NASDAQ: MYGN). 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.
Eldorado Resorts, Inc. (NASDAQ: ERI)
Class Period: March 1, 2019 to September 2, 2019
Lead Plaintiff Deadline: November 22, 2019
On September 3, 2019, Eldorado revealed that CEO Tom Reeg, president and chief operating officer Anthony Carano, executive chairman Gary Carano, and director James Hawkins had received subpoenas in May pertaining to an ongoing investigation of the executives trading in an undisclosed company tied to James Hawkins.
On this news, Eldorado’s share price fell $3.09, or over 8%, to close at $35.42 on September 3, 2019.
The complaint, filed on September 23, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) several of the company’s executive officers, including CEO Thomas Reeg, engaged in improper trading with respect to the securities of another publicly-traded company; and (2) as a result, defendants’ statements about Eldorado’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 Eldorado class action go to: https://bespc.com/eri
Sundial Growers, Inc. (NASDAQ: SNDL)
Class Period: Securities purchased pursuant to and/or traceable to the company’s August 1, 2019 initial public offering (“IPO”).
Lead plaintiff deadline: November 25, 2019
On August 1, 2019, Sundial closed its initial public offering (“IPO”), in which it sold 11 million shares at $13.00 per share, yielding $143 million in proceeds. In the Registration Statement for the IPO, the company stated that it produces “high-quality, consistent cannabis.”
On August 14, 2019, cannabis producer Zenabis Global Inc. (“Zenabis”) revealed that “[c]ertain third-party producers failed to supply saleable cannabis in line with contractual obligations. Due to quality issues, Zenabis had to return or reject a total of 554 kg of cannabis from a third-party.”
On August 19, 2019, MarketWatch published an article stating that Sundial had sold the cannabis to Zenabis. The article also stated that the cannabis was returned “because it contained visible mold, parts of rubber gloves and other non-cannabis material, according to people familiar with the matter.”
On this same day, the company confirmed that it was resolving an “isolated immaterial matter between Sundial and [a] Licensed Producer.”
The complaint, filed on September 25, 2019, alleges that in the IPO and afterwards defendants made false and/or misleading statements and/or failed to disclose that: (1) Sundial failed to supply saleable cannabis in line with contractual obligations to Zenabis Global Inc.; (2) due to material quality issues, Zenabis had to return or reject a total of 554 kg of cannabis to Sundial, valued at approximately U.S. $1.9 million (C$2.5 million); and (3) as a result, defendants’ statements about Sundial’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Sundial’s stock is currently trading at $4.66 per share, a 64% decrease from the $13.00 IPO price.
For more information on the Sundial class action, go to: https://bespc.com/sndl
Tencent Music Entertainment Group (NYSE: TME)
Class Period: December 12, 2018 to August 26, 2019
Lead Plaintiff Deadline: November 25, 2019
On August 27, 2019, Bloomberg reported that the State Administration of Market Regulation, China’s antitrust authority, was investigating exclusive licensing deals between Tencent Music and major record labels including Universal Music Group, Sony Music Entertainment, and Warner Music Group.
On this news, Tencent Music’s American depositary share price fell $0.92 per share, or 6.83%, to close at $12.57 per share on August 27, 2019.
The complaint, filed on September 26, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Tencent Music’s exclusive licensing arrangements with major record labels were anticompetitive; (2) consequently, sublicensing such content from Tencent Music was unreasonably expensive, in violation of Chinese antimonopoly laws; (3) these anticompetitive efforts were reasonably likely to lead to regulatory scrutiny; and (4) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Tencent class action go to: https://bespc.com/tme.
Myriad Genetics, Inc. (NASDAQ: MYGN)
Class Period: September 2, 2019 to August 13, 2019
Lead Plaintiff Deadline: November 26, 2019
On September 1, 2016, Myriad announced the completion of its acquisition of Assurex Health, Inc. (“Assurex”). Myriad also acquired GeneSight through this acquisition.
On July 31, 2018, Myriad announced that it had closed its acquisition of Counsyl, Inc. (“Counsyl”). This acquisition provided Myriad with two new products—ForeSight and Prelude—in the expanded carrier screening and non-invasive prenatal testing markets, respectively. The company estimated that these markets would grow to approximately three million tests performed in the U.S. and $1.5 billion over the next five years.
The complaint, filed on September 27, 2019, 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) GeneSight lacked evidence or information sufficient to support the tests in their current form, including their purported benefits; (ii) the U.S. Food and Drug Administration (“FDA”) had requested changes to GeneSight and questioned the validity of the test’s purported benefits; (iii) Myriad had been in ongoing discussions with the FDA regarding the FDA’s requested changes to GeneSight; (iv) Myriad’s acquisition of Counsyl—and thereby, Foresight—caused the company to incur the risk of suffering from lower reimbursement for its expanded carrier screening tests, which had the potential to, and actually did, materialize into a material negative impact on the company’s revenue; and (v) as a result, the company’s public statements were materially false and misleading at all relevant times.
On August 13, 2019 Myriad issued an earnings release, wherein the company reported its fiscal fourth quarter and full year 2019 financial results. In this release, it was disclosed that “[u]nfortunately, revenue in the fourth quarter was two percent below expectations largely due to lower reimbursement for [the Company’s] expanded carrier screening test”—i.e., Foresight.
Later that day, in an earnings conference call with investors and analysts, it was revealed that “the FDA requested changes to the GeneSight test offering” after Myriad had provided the FDA with clinical evidence and other information to support GeneSight Psychotropic, and that the company has “been in ongoing discussions with the FDA regarding its request.”
Also later that day, Myriad filed an Annual Report on Form 10-K with the SEC, reporting the Company’s financial and operating results for the fiscal year ended June 30, 2019 (the “2019 10-K”). In the 2019 10-K, Defendants disclosed that the FDA had questioned whether the validity of GeneSight’s purported benefits had been established. The 2019 10-K also revealed that, since at least late 2018, the FDA had repeatedly questioned the claims of marketed genetics tests, such as GeneSight.
On this news, Myriad’s stock price fell $19.05 per share, or 42.76% to close at $25.50 per share on August 14, 2019.
For more information on the Myriad Genetics class action go to: https://bespc.com/MYGN
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com