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, Feb. 24, 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 can petition the court to be the lead plaintiff by the deadlines set forth below. You can find additional information at the provided link.
Caribou Biosciences, Inc. CRBU
Class Period: Pursuant/or traceable at the November 20, 2021 IPO; Pursuant/or traceable at the March 18, 2020 SPO; November 20, 2021 – September 19, 2022
Deadline for Lead Plaintiffs: April 11, 20,23
Caribou, a biopharmaceutical company in clinical stage, focuses on the development of allogeneic gene-edited cell therapies to treat solid tumors and hematologic malignancies in the U.S. CB-010, an anti-CD19 CAR–T therapy1 is being developed by the Company. This is a Phase 1 clinical study, also known as “ANTLER”, and is used to treat relapsed/refractory B cells non-Hodgkin lymphoma (r/r B–NHL).
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, on July 23, 2021. The same day, Caribou filed a prospectus, Form 424B4 to the SEC, in connection with the IPO. This prospectus 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 materially false or misleading statements about the Company’s business operations and prospects 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 published a press statement on June 10, 2022.[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 at 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.
This news caused Caribou’s stock to fall $1.78 per share (or 20.41%) to close at $6.94 on June 10, 2022.
Caribou then issued a press release on December 12, 2022.[ing] New 12-month clinical data from cohort 1 of the ongoing ANTLER Phase 1 trial. [purportedly] Show[ed] Long-term durability after a single injection of CB-010 at dose level 1 (40×106 CAR–T cells). Caribou stated that “3 out of 6 patients retained a durable CCR at 6 month scan” and that “2 of 6 maintain a long term CR at 12 month scans and remain on the trial”, thus confirming investor concerns about the CB-010 treatment’s lack of durability.
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: December 15, 2022 – May 11, 2022
Deadline for Lead Plaintiff: April 17, 2023
The Complaint alleges that the Company made misleading and false statements to the market. Inspirato’s financial statements for quarters ending March 31, 2022 or June 30, 2022 (collectively known as the “Non Reliance periods”) cannot be relied upon. The incorrect application of Accounting Standards Update No. 2016-02 Leases (Topic 852) (“ASC 842”) caused the Non-Reliance Periods to be unreliable. These facts prove that the Company’s public statements throughout the class period were false and misleading. Investors suffered losses when Inspirato was revealed to be false.
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 Plaintiff: April 17, 2023
Kornit develops and manufactures digital printing technology for the apparel, textile, and garment industries. End-users have the option to print directly-to-garment (“DTG”) or direct–to-fabric (“DTF”) with the digital inkjet printers of Kornit. DTG printing allows designs and images to be printed directly on finished textiles, such as apparel and clothing. 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 offers customer support contracts that provide technical support and equipment services to its printers.
The Company began offering software services during the Class Period. This included a suite end-to-end fulfillment solutions and production solutions called KornitX. Through KornitX, the Company offers, among others, automated production systems, workflow, and inventory management.
Amazon.com, Inc. (“Amazon”), a multinational e-commerce company, is the Company’s largest customer. Other customers of Kornit during the Class Period included Delta Apparel, Inc. (“Delta Apparel”), which is a major provider of activewear, lifestyle apparel, and Fanatics, Inc. (“Fanatics”), which is a global digital platform that provides licensed merchandise and a leader in licensing. 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 spoke out about the alleged competitive advantages it had and assured investors that they faced little competition in the “directly-to-garment printing” market. Kornit also claimed that its digital printing systems and consumable products (such as textile inks) were in high demand. Kornit also provided services to customers to help them maintain and manage their digital printers and manage their customer workflows. 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 throughout 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 issues and deficiencies caused Kornit’s market share to be ceded to competitors. This in turn led to a decrease of revenue as customers went to other places for their digital printing needs. 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 stated that the new technology was already in place in four of its digital printing facilities, and plans to continue expanding. 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, even though it had reported revenues exceeding expectations. This compares to a profit in the previous year period of $5.1million. The revenue guidance issued by the Company for the second quarter 2022 was also significantly lower than analysts’ expectations. Kornit blamed the Company’s disappointing guidance on a slowdown of orders from its customers in the ecommerce segment. The Company also admitted that it knew for at least two quarters that Delta Apparel had purchased digital printing systems from Kornit competitors. 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 an additional $8.10, 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 Plaintiff: April 18, 2023
Alico operates in the U.S. together with its subsidiaries as an agribusiness company and land management firm. The Company operates in 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. In particular, Alico stated in the press release that it required additional time for its independent registered public accounting firm to audit its financial results for the September 30th period.
Alico’s stock price dropped by $3.06 per shares, or 10.42% to close at $26.29 on December 6, 2022.
Alico then issued a press statement on December 7, 2022 giving an update on the Company’s progress in reporting fiscal year 2022 financial results and making required filings to the SEC. 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 revealed that “[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.”
Alico stock closed at $25.05 per Share on December 14, 2022, after falling by $2.64 per shares (9.53%).
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 investors, both individual and institutional, in complex commercial, securities, derivative, as well as other litigation in federal and state courts throughout the country. Visit the website for more information. www.bespc.com. Attorney advertising Past results are not indicative of future results.
Contact Information
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com