On November 18, 2021, Peloton was sued for violations of the federal securities laws in the United States District Court for the Southern District of New York on behalf of investors who purchased the Company’s shares between December 9, 2020 and November 4, 2021.
Recent Security Class Actions
On November 18, 2021, Ginkgo Bioworks 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 May 11, 2021 and October 5, 2021.
On November 17, 2021, Owlet 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 the Company’s securities between March 31, 2021 and October 4, 2021, inclusive (the “Class Period”) and/or held Sandbridge common stock held as of June 1, 2021 and were eligible to vote at Sandbridge’s special meeting on July 14, 2021.
On November 16, 2021, Lightspeed Commerce 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 September 11, 2020 and September 28, 2021.
On November 16, 2021, Zillow Group 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 securities between February 10, 2021 and November 2, 2021.
On November 12, 2021, Novavax was sued for violations of the federal securities laws in the United States District Court for the District of Maryland on behalf of investors who purchased the Company’s securities between March 2, 2021 and October 19, 2021.
On October 27, 2021, Facebook (now Meta Platforms, Inc.) was sued for violations of the federal securities laws in the Eastern District of New York on behalf of investors who purchased the Company’s securities between November 3, 2016 and October 4, 2021.
On November 11, 2021, Snap 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 the Company’s securities between July 22, 2020 and October 21, 2021.
On August 12, 2021, post-market, the Company disclosed that the Company’s largest third-party payer, which accounted for 80% of its accounts receivables and was “basically administrating on behalf of the federal government,” had not paid on submitted claims since March 1, 2021. On this news, the Company’s share price fell $8.00, or over 24%, to close at $24.70 per share on August 13, 2021, on unusually heavy trading volume.
Then, on September 22, 2021, post-market, the Company disclosed that “it is the target of a criminal investigation by the U.S. Department of Justice related to insurance reimbursement claims the Company has submitted on behalf of customers covered by federal employee health plans,” and as a result was withdrawing its financial guidance for the fiscal year ending Dec. 31.
ON24 and certain of its executives are charged with failing to disclose material information in the Company’s IPO Registration Statement and Prospectus, violating federal securities laws. Specifically, the Complaint alleges that the Registration Statement and Prospectus failed to disclose, among other things, that the surge in customers leading up to the IPO consisted of a significant number that, driven by COVID-19 related demand, did not fit the Company’s traditional customer profile, and, as a result, were significantly less likely to renew their contracts leading to an increase in churn.
