Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Laboratory Corporation of America Holdings (NYSE: LH), Hollysys Automation Technologies Ltd. (NASDAQ: HOLI), and Cronos Group, Inc. (NASDAQ: CRON). 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.
Laboratory Corporation of America (NYSE: LH)
On January 1, 2022, an article from the New York Times called into question the accuracy of certain noninvasive prenatal tests, including that developed by Labcorp. The article alleges that positive results on tests are incorrect about 85% of the time. Patients who receive a positive result are supposed to pursue follow-up testing, which "can cost thousands of dollars, come with a small risk of miscarriage and can't be performed until later in pregnancy." The investigation highlights the statistical challenge of testing from things that are extremely rare. But, this isn't adequately explained to patients who were sold the tests. Companies that develop these tests use language like "highly accurate" and "total confidence," do not publish data on their tests' overall performance, or only stress data from tests that are more accurate.
On this news, Labcorp's stock fell over $16.00, or 5%, to close at $298.18 per share on January 3, 2022, injuring investors.
For more information on the Laboratory Corporation investigation go to: https://bespc.com/cases/LH
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 Automation 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
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.