Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Hollysys Automation Technologies Ltd. (NASDAQ: HOLI), Cronos Group, Inc. (NASDAQ: CRON), and Talkspace, Inc. (NASDAQ: TALK). 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.
Hollysys Automation Technologies Ltd. (NASDAQ: HOLI)
On November 2, 2021, Hollysys filed a notice with the U.S. Securities and Exchange Commission stating that the Company could not timely file its annual report for the period ended June 30, 2021 because of a "delay in collecting supporting documents and information." Hollysys also disclosed that it had replaced Ernst & Young Hua Ming LLP as its independent auditor.
On this news, Hollysys's stock price fell $5.69 per share, or 29%, to close at $13.70 per share on November 3, 2021.
For more information on the Hollysys investigation go to: https://bespc.com/cases/HOLI
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
Talkspace, Inc. (NASDAQ: TALK)
On November 15, 2021, post-market, Talkspace issued a press release "announc[ing] . . . that its co-founder and CEO, Oren Frank, has decided to step down from his position as CEO and Board member of Talkspace, effective today." Shortly thereafter on the same day, Talkspace issued a press release reporting its financial results for the third quarter of 2021. Among other items, Talkspace disclosed that its net revenue for the quarter "came in below management expectations due to a lower number of B2C [business-to-consumer] customers and a one-time non-cash reserve adjustment for credit losses on receivables related to prior periods."
On this news, the Company's share price declined by $1.23 per share, or approximately 36.3%, from $3.39 per share to close at $2.16 per share on November 16, 2021.
For more information on the Talkspace investigation go to: https://bespc.com/cases/TALK
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.