Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Clariant AG (OTCMKTS: CLZNY), MoneyLion, Inc. (NYSE: ML), Cronos Group, Inc. (NASDAQ: CRON), and Agrify Corporation (NASDAQ: AGFY). Our investigations concern whether these companies have violated the federal securities laws andor engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
Clariant AG (OTCMKTS: CLZNY)
On February 14, 2022, Swiss chemical maker, Clariant AG, disclosed that it will delay issuing Q4 2021 and full year 2021 financial results due an ongoing internal investigation into potential accounting fraud.
Clariant AG is investigating internal whistleblower complaints that the company has known about since September 2021, pertaining to booking issues aimed at boosting results to meet targets.
On this news, shares of Clariant AG ADR shares fell more than 14% in intraday trading on February 14, 2022.
For more information on the Clariant investigation go to: https://bespc.com/cases/CLZNY
MoneyLion, Inc. (NYSE: ML)
On March 10, 2022, MoneyLion disclosed in a filing with the U.S. Securities and Exchange Commission that "the Company's management has noted errors related to operating expenses, net loss and basic and diluted earnings (loss) per share in the condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and additional paid-in capital and retained earnings in the condensed consolidated balance sheet as of September 30, 2021, along with related impacts to the condensed consolidated statement of cash flows for the nine months ended September 30, 2021 and the condensed consolidated statements of redeemable convertible preferred stock, redeemable noncontrolling interests and stockholders' deficit for the three and nine months ended September 30, 2021." MoneyLion further disclosed that "the Company's management identified a second error . . . as the denominator of the diluted net income per share calculation for the three months ended September 30, 2021 did not include the impact of dilutive securities" and that "[t]he Company's management, in consultation with its advisors, has determined that the calculation of diluted net income per share included within the condensed consolidated statement of operations for the three months ended September 30, 2021 should have included the impact of dilutive securities." Accordingly, the Audit Committee of MoneyLion's Board of Directors determined that the financial statements in question "should no longer be relied upon and should be restated in order to correct the errors described above."
On this news, MoneyLion's stock price fell $0.18 per share, or 7.11%, to close at $2.29 per share on March 10, 2022.
For more information on the MoneyLion investigation go to: https://bespc.com/cases/ML
Cronos Group, Inc. (NASDAQ: CRON)
On November 9, 2021, Cronos filed a Form 8-K with the U.S. Securities and Exchange Commission, stating that "[o]n November 8, 2021, Cronos Group Inc. . . . determined that it will be required to restate its previously issued unaudited interim financial statements for the three and six months ended June 30, 2021 previously filed on Form 10-Q on August 6, 2021" and advising that "[t]he Company's financial statements for this period should therefore no longer be relied upon." Cronos further stated that "[t]he Company concluded that it should have recorded an impairment charge of not less than $220 million on goodwill and indefinite-lived intangible assets in its U.S. reporting unit for the three and six months ended June 30, 2021. The Company will restate its unaudited interim financial statements for the three and six months ended June 30, 2021, accordingly." According to Cronos, the Company "is also evaluating whether to record an additional impairment in the three and nine months ended September 30, 2021."
On this news, Cronos's stock price fell $1.01 per share, or 15.05%, to close at $5.70 per share on November 9, 2021.
For more information on the Cronos Group investigation go to: https://bespc.com/cases/CRON
Agrify Corporation (NASDAQ: AGFY)
On December 16, 2021, during trading hours, market analyst Bonitas Research published a report regarding Agrify which alleges several issues at the Company including that "[w]e believe that Agrify created artificial demand for its product by financing undisclosed Company insiders to act as independent customers." Further the report alleges that "Agrify insiders lied to investors about the independence of its customer base in order to execute a dubious stock promotion for self-enrichment at the expense of minority shareholders[,]" and that "[e]vidence showed that five (5) of Agrify's eight (8) customer announcements in 2021 are either with undisclosed Company insiders or with unlicensed unproven operators."
On this news, Agrify's common stock price fell sharply during intraday trading on December 16, 2021.
For more information on the Agrify investigation go to: https://bespc.com/cases/AGFY
CareDx, Inc. (NASDAQ: CDNA)
On January 25, 2021, the Company sold 1,923,077 shares of its common stock through an underwritten public offering at a public offering price of $91.00 per share.
On October 28, 2021, after the market closed, CareDx released Q3 2021 financial results in which the Company disclosed that the U.S. Department of Justice ("DOJ") had recently served a civil investigatory demand requesting documents in connection with a False Claims Act investigation. The DOJ is investigating business practices related to CareDx's kidney testing and phlebotomy services. The Company also disclosed that it received a subpoena from the U.S. Securities and Exchange Commission ("SEC") for similar issues as well as certain accounting and public reporting practices, and the Company received an information request from an unnamed state agency.
On this news, the Company's share price declined by $19.34 per share, or approximately 27.5%, from $70.34 per share to close at $51.00 per share on October 29, 2021.
For more information on the CareDx investigation go to: https://bespc.com/cases/CDNA
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.