Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Caribou, Inspirato, Kornit, and Alico and Encourages Investors to Contact the Firm – Alico (NASDAQ:ALCO), Caribou Biosciences (NASDAQ:CRBU)
NEW YORK, March 27, 2023 (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 Caribou Biosciences, Inc. CRBU, Inspirato Incorporated ISPOKornit Digital Ltd. KRNTAlico, Inc. ALCO. Stockholders have until the following deadlines to petition the court for the role of lead plaintiff. The link below provides additional information on each case.
Caribou Biosciences, Inc. CRBU
Class Period: Pursuant to and/or traceable the November 20, 2020 IPO. Pursuant to and/or traceable the March 18, 2021 SP; November 20, 2020 – September 19, 2022.
Deadline for Lead Plaintiff: April 11, 2023
Caribou is a biopharmaceutical firm in the clinical stage. It develops genome-edited allogeneic cells therapies for the treatment and prevention of solid tumors. CB-010 is one of the product candidates being developed by Caribou. It is an allogeneic antiCD19 CAR–T cell therapy1 (also known as “ANTLER”) to treat relapsed/refractory non-Hodgkin Lymphoma.
According to Defendants, CB-010 is the first clinical-stage allogeneic anti-CD19 CAR-T cell therapy with programmed cell death protein 1 (“PD-1”) removed from the CAR-T cell surface by a genome-edited knockout of the PDCD1 gene, which purportedly sets CB-010 apart from other allogeneic CAR-T cells by, inter alia, improving the “persistence” of antitumor activity.
Caribou filed a Form S-1 registration statement with the SEC on July 1, 2021 in connection to the IPO. The SEC declared the registration effective on July 22, 2021.
Caribou’s common stock was made publicly available on the Nasdaq Global Selection Market (“NASDAQ”), under the ticker symbol CRBU, pursuant the Registration Statement. The same day, Caribou filed a prospectus, Form 424B4, with the SEC to discuss the IPO. It was incorporated into and made part of the Registration Statement (the Prospectus and, together with the Registration Statement the “Offering Documents”)
Caribou issued 19,000,000 shares of common stock pursuant to the Offering documents for proceeds of $282.72million to the Company before expenses and any applicable underwriting discounts.
The Offering Documents were prepared negligently and contained false statements of material facts or omitted other facts to make the statements not misleading. They were also not prepared according to the rules and regulations that govern their preparation. Defendants also made misleading statements about the Company’s prospects and business operations throughout the Class Period. The Offering Documents and the Defendants made misleading and false statements, and/or failed disclose that (i) CB-010’s treatment effect wasn’t as durable as Defendants led investors to believe; and (ii), CB-010’s clinical and commercial prospects had been overstated. (iii). As a result, both the Offering Documents (and Defendants’ public statements throughout Class Period were materially falsified and/or misleading, and did not state the information.
Caribou released a press release on June 10, 2022 reporting that “[p]ositive” data from the ANTLER Phase 1 clinical trial. Caribou reported, among other things, that “[a]t 6 months following the single dose of CB-010, [only] 40% of patients remained in CR [complete response] (2 of 5 patients) as of the May 13, 2022 data cutoff date”, prompting investor concern over the durability of the CB-010 treatment.
Caribou stock closed at $6.94 per shares on June 10, 2022, after falling $1.78 per Share (or 20.41%) due to this news.
Caribou released a press statement “report” on December 12, 2022.[ing] New 12-month clinical data have been released from the cohort 1 of the ongoing ANTLER Phase 1 study. [purportedly] Show[ed] CB-010 infusion at initial dose 1 (40×106 CAR–T cell cells) has long-term durability. Caribou also reported that 3 of 6 patients had a durable CR after 6 months and that 2 of 6 maintained a long-term, stable CR at 12 months scans. This confirmed investor concerns that CB-010 was not durable.
This news caused Caribou’s stock to fall $0.81 per share (or 9.03%) to close at $8.16 on December 12, 2022.
Caribou common stock continues trading below the $16.00 share Offering price as of the filing of this Complaint. This is a negative for investors.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of Caribou’s securities, Plaintiff and other Class members have suffered significant losses and damages.
For more information on the Caribou class action go to: https://bespc.com/cases/CRBU
Inspirato Incorporated ISPO
Class Period: May 11, 2022 to December 15, 2022
Deadline for Lead Plaintiffs: April 17, 2023
The Complaint alleges that the Company made misleading and false statements to the market. Inspirato’s financial statements, including those for the quarters ended March 31, 2022 and Juni 30, 2022 (collectively the “Non Reliance Periods”), cannot be relied on. Incorrectly applying Accounting Standards Update (ASU No. 2016-02-02, Leases (Topic 842″) (“ASC 842), which resulted in the non-reliability of Non-Reliance Periods. These facts show that the Company’s public statements during the class period were false, misleading and misleading. Investors suffered damage when the truth was revealed about Inspirato.
For more information on the Inspirato class action go to: https://bespc.com/cases/ISPO
Kornit Digital Ltd. KRNT
Class Period: February 17, 2021 to July 5, 2022
Deadline for Lead Plaintiffs: April 17, 2023
Kornit is a manufacturer of industrial digital printing technologies that are used in the textile, garment, and apparel industries. End-users can print direct-to fabric (“DTF”) or direct-to garment (“DTG”) using the Company’s digital printers. DTG printing is where designs and images can be printed directly onto textiles like clothing and apparel. In DTF printing, large rolls of fabric pass through wide inkjet printers that print images and designs directly onto swaths of fabric that are then cut and sewn into a product, and can be used in the fashion and home décor industries. Kornit also sells textile inks, and other consumables to use with its digital printers. Kornit provides technical support and customer service for its printers through customer support agreements.
During the Class Period, KornitX began offering software services to customers. It offers a suite of end–to-end fulfillment, production and management solutions.
Amazon.com, Inc. (“Amazon”), a multinational e-commerce company, is the Company’s largest customer. The largest customers Kornit had during the Class Period was Delta Apparel, Inc. (“Delta Apparel”), an international e-commerce company that offers activewear and lifestyle apparel, as well as Fanatics, Inc. (“Fanatics”), the leading global provider of licensed sports merchandise and a global digital sport platform. Kornit earns over 60% of its revenues through its ten largest customers. Accordingly, it was critically important for Kornit to maintain those major customers as well as continue to grow its customer base in order to achieve the Company’s ambitious goal of “becoming a $1 billion revenue company in 2026.”
Kornit repeatedly emphasized the claimed competitive advantages of its technology throughout the Class Period and assured investors that there was virtually no competition in the “direct to-garment” printing market. Kornit claimed that customers were very interested in its digital printing systems. It also offered consumable products such as textile dyes. Kornit also offered services to assist them with managing their digital printers. Kornit also assured investors that there was strong demand for its products and services, which would allow it to retain its existing customers and attract new ones. This would reduce the risk associated with a large portion of the Company’s revenues being concentrated in a few large customers.
These and other statements were made during the Class Period, but they were false. Kornit and its senior executives did not know, or at least recklessly disregard, the fact that the Company’s digital printer business was plagued in quality control and customer service issues. These problems and deficiencies led Kornit to lose market share to its competitors. This resulted in a decline in revenue for the Company as customers moved to other digital printing companies. Because of these false representations, Kornit ordinary shares were traded at artificially elevated prices throughout the Class Period.
Investors began to learn the truth on March 28, 2022, when Delta Apparel and Fanatics—two of Kornit’s major customers—announced that for months they had collaborated with one of Kornit’s principal competitors to develop a new digital printing technology that directly competed with products and services Kornit offered. Delta Apparel said that it had installed the new technology in four existing digital print facilities and was planning to expand. The utilization of this new, competing technology by Delta Apparel and Fanatics reflected the widespread dissatisfaction of Kornit’s major customers with the Company’s product quality and customer service, and meant that Kornit would likely lose revenue from two of its most important customers.
Kornit reported a net loss for its first quarter 2022. This was despite reporting revenue that was higher than expected. The revenue guidance issued by the Company for the second quarter 2022 was also significantly lower than analysts’ expectations. Kornit said that the Company’s disappointing guidance was due to a slower pace of orders from customers in the electronic commerce segment. Additionally, Kornit admitted that for at most the past two quarters, Kornit knew Delta Apparel, one of its largest customers had purchased digital printing equipment from a Kornit competitor. The disclosures led to a drop in the price of Kornit ordinary stock shares of $18.78 per share or 33.3%.
Kornit announced on July 5, 2022 that it would report significant revenue loss for the second quarter in 2022. Kornit forecasted that revenue for the second quarter would be between $56.4 million and $59.4 millions. This is far below the $85 million to $95 million revenue guidance the Company gave less than two months ago, in May 2022. Kornit said that the significant revenue loss was due to “a significantly slower rate of direct-to garment (DTG) system orders in the second quarter compared to our previous expectations.” The price of Kornit ordinary shares fell by $8.10 per shared, or 25.7%, as a result.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s shares, Plaintiff and other Class members have suffered significant losses and damages.
For more information on the Kornit class action go to: https://bespc.com/cases/KRNT
Alico, Inc. ALCO
Class Period: December 13, 2022 – February 4, 2021
Deadline for Lead Plaintiffs: April 18, 2023
Alico operates in the U.S. together with its subsidiaries as an agribusiness company and land management firm. The Company operates as an agribusiness and land management company in the United States. It has two segments. Alico Citrus is a segment that cultivates citrus trees for fresh and processed citrus markets. The Land Management and Other Operations Segment owns and operates land in Collier and Glades Counties. They also lease land for recreational and grazing purposes as well as conservation and mining activities.
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Alico had deficient disclosure controls and procedures and internal control over financial reporting; (ii) as a result, the Company had improperly calculated Alico’s deferred tax liabilities over a multi-year period; (iii) accordingly, the Company would likely be required to restate one or more of its previously issued financial statements; (iv) the foregoing would impede the timely completion of the audit of the Company’s financial results in advance of its year-end earnings call; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Alico announced that its year-end earnings call would be delayed on December 6, 2022 in a press release. The press release stated specifically that Alico needed additional time to complete the audit of its financial results for September 30, 2022 by an independent registered public accountant firm.
This news caused Alico’s stock to drop $3.06 per share (or 10.42%) to close at $26.29 per Share on December 6, 2022.
Alico released a press release on December 7, 2022 that provided an update on the Company’s delays in reporting fiscal 2022 results and filing the required SEC filings. In the press release, the Company disclosed that “[t]he key item that is requiring such additional time involves evaluation of the proper amount of the Company’s Deferred Tax Liability, particularly certain portions of that Deferred Tax Liability arising in prior fiscal years, including those going back to fiscal year 2019 or possibly several years before fiscal year 2019.”
Alico finally filed its Annual Report on Form 10K for the year ending September 30, 2022 with the SEC on December 13, 2022 (the “2022-10K”). Alico “restates” in the 2022 10-K.[d] the Company’s previously issued audited consolidated balance sheet, audited consolidated statements of changes in equity and related disclosures as of September 30, 2021 included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2021 (the ‘2021 10-K’) previously filed with the SEC and the Company’s previously issued unaudited consolidated balance sheet, unaudited consolidated statements of changes in equity and related disclosures as of the end of each quarterly periods ended June 30, 2022, March 31, 2022, December 31, 2021, June 30, 2021, March 31, 2021 and December 31, 2020 included in the Company’s respective Quarterly Report on Form 10-Q for each of the quarters then ended previously filed with the SEC (together with the 2021 10-K, the ‘Financial Statements’).” The Company also stated that the following:[o]n December 12, 2022, the audit committee (the ‘Audit Committee’) of the board of directors of the Company concluded that the Company’s previously issued Financial Statements can no longer be relied upon due to an error identified during the completion of the 2022 10-K.” Specifically, Alico stated that “[t]he error that led to the Audit Committee’s conclusion relates to the calculation of the deferred tax liabilities for the fiscal years 2015 through 2019, which resulted in a cumulative reduction in the Company’s deferred tax liability, and a corresponding cumulative increase in retained earnings, of approximately $2,512,000 on the Company’s balance sheet as of September 30, 2022.”
This news caused Alico’s stock to drop $2.64 per share (9.53%) to close at $25.05 on December 14, 2022.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.
For more information on the Alico class action go to: https://bespc.com/cases/ALCO
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. Bragar Eagel & Squire, P.C. is a nationally-recognized law firm with offices throughout New York, California, South Carolina, and California. The firm represents institutional and individual investors in complex litigations in securities, derivative, commercial and other state and federal courts throughout the country. Visit the website for more information. www.bespc.com. Advertising attorney. Previous results do not guarantee the same outcome.
Contact Information
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com