Recent Security Class Actions

According to the Complaint, Latch, Inc. is an enterprise technology company that offers a full-building operating system, LatchOS, to address the essential requirements of modern buildings. It offers modules for delivery and guest management, as well as smart home and sensors. On or about June 3, 2021, Latch became a public entity via business combination with TS Innovation Acquisitions Corp.

The Complaint 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, the Complaint alleges Defendants failed to disclose to investors: (1) that there were unreported sales arrangements related to hardware devices; (2) that, as a result, the Company had improperly recognized revenue throughout fiscal 2021 and first quarter 2022; (3) that there were material weaknesses in Latch's internal control over financial reporting related to revenue recognition; (4) that, as a result of the foregoing, Latch would restate financial statements for fiscal 2021 and first quarter 2022; and (5) 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.

According to the Complaint, LifeStance Health Group, Inc. provides outpatient mental health services in 31 states. LifeStance Health conducted its IPO on June 10, 2021, selling 46 million shares at $18.00 per share, raising $828 million in gross proceeds.

The Complaint alleges that the IPO's registration statement failed to disclose the following material facts: (i) that the number of virtual visits clients were undertaking utilizing LifeStance Health was decreasing as the COVID-19 lockdowns were being lifted, thereby flatlining LifeStance Health's out-patient/virtual revenue growth; (ii) that the percentage of in-person visits clients were undertaking utilizing LifeStance Health was increasing as the COVID-19 lockdowns were being lifted, thereby causing LifeStance Health's operating expenses to increase substantially; (iii) that LifeStance Health had lost a large number of physicians due to burn-out and, as a result, its physician retention rate had fallen significantly below the 87% highlighted in the IPO's registration statement and LifeStance Health had been expending additional costs to onboard new physicians who were less productive than the outgoing physicians they were replacing; and (iv) as a result, LifeStance Health's business metrics and financial prospects were not as strong as the IPO's registration statement represented.

On November 17, 2022, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on December 19. Defendants filed a Motion to Dismiss the amended Complaint on January 18, 2023. On April 10, the Court issued an Order denying Defendants' Motion to Dismiss.

Lead Plaintiff filed a Motion for Class Certification on June 2, 2023. On September 7, the Court issued an Order granting the Class Certification Motion.

The parties entered into a Stipulation of Settlement on October 13, 2023. The Court granted preliminary approval of the Settlement on October 25.

On July 06, 2022, Amazon.com, Inc. was sued for violations of the federal securities laws in the United States District Court for the Western District of Washington on behalf of investors who purchased the Company’s shares between July 30, 2021 and April 28, 2022.

The Complaint 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, the Complaint alleges Defendants failed to disclose to investors: (1) that Netflix was exhibiting slower acquisition growth due to, among other things, account sharing by customers and increased competition from other streaming services; (2) that the Company was experiencing difficulties retaining customers; (3) that, as a result of the foregoing, the Company was losing subscribers on a net basis; (4) that, as a result, the Company's financial results were being adversely affected; and (5) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

On March 8, 2022, Meta Platforms, Inc., the parent company of Facebook and Instagram, was sued for violations of the federal securities laws in the United States District Court for the Northern District of California on behalf of investors who purchased the Company’s securities between March 2, 2021 and February 2, 2022.

On March 7, 2022, Rivian Automotive was sued for violations of the federal securities laws in the United States District Court for the Central District of California on behalf of investors who purchased shares pursuant or traceable to the Company’s Registration Statement issued in connection with the Company’s November 2021 initial public stock offering (the "IPO" or the "Offering").

According to the Complaint, C3.ai, Inc. operates as an enterprise AI software company. The Company offers a variety of SaaS applications for enterprises, as well as software solutions and integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market segments. The Company also has purported strategic partnerships with Baker Hughes related to oil and gas markets; FIS related to financial services markets; Raytheon; and AWS, Intel, and Microsoft.

On November 13, 2020, C3.ai filed the Registration Statement on Form S-1 with the SEC in connection with the IPO, which, after several amendments, was declared effective by the SEC on December 8, 2020. On December 9, 2020, pursuant to the Registration Statement, C3.ai's Class A common stock began publicly trading. That same day, C3.ai filed the Prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement.

The Complaint alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Additionally, throughout the Class Period, the Complaint alleges Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, the Offering Documents and Defendants allegedly made false and/or misleading statements and/or failed to disclose that: (i) C3.ai's partnership with Baker Hughes was deteriorating; (ii) C3.ai's was employing a flawed accounting methodology to conceal the deterioration of its Baker Hughes partnership; (iii) C3.ai faced challenges in product adoption and significant salesforce turnover; (iv) the Company overstated, inter alia, the extent of its investment in technology, description of its customers, its total addressable market, the pace of its market growth, and the scale of alliances with its major business partners; and (v) as a result, the Company's public statements were materially false and misleading at all relevant times.

On December 12, 2022, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on February 15, 2023.

On June 30, 2023, Lead Plaintiff voluntarily dismissed the Underwriter Defendants.

On February 16, 2022, SunPower Corporation was sued for violations of the federal securities laws in the United States District Court for the Northern District of California on behalf of investors who purchased the Company’s securities between August 3, 2021 and January 20, 2022.

On February 9, 2022, Fennec Pharmaceuticals was sued for violations of the federal securities laws in the United States District Court for the Middle District of North Carolina on behalf of investors who purchased the Company’s securities between May 28, 2021 and November 26, 2021.

On December 22, 2021, DocuSign was sued for violations of the federal securities laws in the United States District Court for the Eastern District of New York on behalf of investors who purchased the Company’s securities between March 27, 2020 and December 2, 2021.