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Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed ...

October 28, 2021 GMT

NEW YORK, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of The Honest Company (NASDAQ: HNST), Vipshop Holdings Ltd. (NYSE: VIPS), InnovAge Holding Corp. (NASDAQ: INNV), and Lightning eMotors, Inc. (NYSE: ZEV). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.

The Honest Company, Inc. (NASDAQ: HNST)

Class Period: May 2021 IPO

Lead Plaintiff Deadline: November 15, 2021

On May 6, 2021, Honest Company completed its IPO, selling approximately 26 million shares of common stock for $16.00 per share.

Approximately two months after the IPO, on August 13, 2021, before the market opened, Honest Company announced its second quarter 2021 financial results, reporting a net loss of $20 million, compared to a net loss of only $0.4 million for the second quarter of 2020. Honest disclosed that its revenue grew only 3% as compared to the second quarter of 2020, because it was negatively impacted by “an estimated $3.7 million COVID-19 stock-up impact primarily in Diapers and Wipes in the prior year period.” Honest Company also disclosed that its Diapers and Wipes category revenue declined 2% compared to the second quarter of 2020. Honest further disclosed that “Household and Wellness revenue declined 6% from the second quarter of 2020 as consumer and customer demand for sanitization products decreased as consumers became vaccinated and customers managed heavy levels of inventory.”

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On this news, the Company’s stock price fell $3.98 per share, or 28%, to close at $10.07 per share on August 13, 2021, on unusually heavy trading volume.

On August 19, 2021, the Company’s stock price closed at an all-time low of $9.16 per share, a nearly 43% decline from the $16.00 per share IPO price.

According to the complaint, the Registration Statement was materially false and misleading and omitted: (1) that, prior to the IPO, the Company’s results had been significantly impacted by a multimillion-dollar COVID-19 stock-up for products in the Diapers and Wipes category and Household and Wellness category; (2) that, at the time of the IPO, the Company was experiencing decelerating demand for such products; (3) that, as a result, the Company’s financial results would likely be adversely impacted; and (4) 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.

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For more information on the Honest Company class action go to: https://bespc.com/cases/HNST

Vipshop Holdings Ltd. (NYSE: VIPS)

Class Period: March 22, 2021 to March 29, 2021

Lead Plaintiff Deadline: December 13, 2021

The complaint alleges that throughout the Class Period, Defendants traded while in possession of material non-public information and that: (1) Defendants obtained the material non-public information pursuant to their agreements with Archegos Capital Management’s (“Archegos”) and as a result of their serving as prime brokers of Archegos. (2) Defendants knew, recklessly disregarded, or should have known that they owed a fiduciary duty, or obligation arising from a similar relationship of trust and confidence, to Archegos to keep the information confidential. (3) Nevertheless, while in possession of material, non-public adverse information, Defendants collectively sold billions of dollars’ worth of Company shares. Later, when the information became publicly known, the price of the Company’s common stock declined sharply as a result of such disclosure.

For more information on the Vipshop class action go to: https://bespc.com/cases/VIPS

InnovAge Holding Corp. (NASDAQ: INNV)

Class Period: March 2021 IPO

Lead Plaintiff Deadline: December 13, 2021

The action alleges that InnovAge and other insiders made false and misleading statements in the registration statement for the company’s March 2021 IPO, which allowed InnovAge to raise over $373.6 million in proceeds.

Specifically, the registration statement omitted, among other facts, that: (1) certain of InnovAge’s facilities failed to provide covered services, provide accessible and adequate services, manage participants’ medical situations, and oversee use of specialists; (2) as a result, the company was reasonably likely to be subject to regulatory scrutiny, including by the Centers for Medicare and Medicaid Services (CMS); and (3) consequently, there was a significant risk that CMS would suspend new enrollments pending an audit of the company’s services.

The registration statement’s accuracy was brought into question on Sep. 21, 2021, when the company revealed that CMS determined to freeze new enrollments at its Sacramento facility based on observed deficiencies.

On this news, the company’s stock price fell $2.90 per share, or 25%, in a single trading day. As of the filing of the complaint, InnovAge trades nearly 70% below the $20 IPO price.

For more information on the InnovAge class action go to: https://bespc.com/cases/INNV

Lightning eMotors, Inc. (NYSE: ZEV)

Class Period: May 7, 2021 to August 16, 2021

Lead Plaintiff Deadline: December 14, 2021

Lightning eMotors’ stock began trading on the New York Stock Exchange on May 7, 2021 following a de-SPAC transaction with GigCapital3. Then, on August 16, 2021, Lightning eMotors announced the Company’s financial results for the second quarter of 2021, including a net loss per share of $0.79 compared to a loss of $0.10 in the second quarter of 2020. The Company also pulled its full year financial guidance for the remainder of 2021, just days after announcing a multi-year agreement with Forest River, a Berkshire Hathaway company.

On this news, Lightning eMotors’ stock price fell $1.63 per share, or 16.93%, to close at $8.00 per share on August 17, 2021.

For more information on the Lightning eMotors class action go to: https://bespc.com/cases/ZEV

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.

Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com