SUITS AGAINST FB, ABBV and MYPS – Jakubowitz Law pursues shareholder claims – Tips & Results

Class Period: November 15, 2021 – February 28, 2022

Lead Plaintiff Deadline: May 31, 2022

On February 28, 2022, Lucid announced that it had only delivered about 125 EVs in 2021 – 452 fewer than expected – and would only produce between 12,000 and 14,000 EVs in 2022, despite previous claims that it would produce 20,000. The company also announced that it would delay the launch of its Lucid Gravity SUV from 2023 to 2024, citing “the exceptional supply chain and logistics challenges” as the reason.

As a result of this news, Lucid common stock fell $3.99, or 13.8%, to close at $24.99 per share on March 1, 2022, hurting investors.

The Complaint filed in this Class Action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, the defendants overstated Lucid’s manufacturing capabilities while concealing that “extraordinary supply chain and logistics challenges” have hampered the company’s operations since the beginning of the class action period.

For more information on Lucid’s class action lawsuit, please visit: https://bespc.com/cases/LCID

ABBVie, Inc. (NYSE:ABBV)

Class Period: April 30, 2021 – August 31, 2021

Lead Plaintiff Deadline: June 6, 2022

AbbVie is one of the world’s largest pharmaceutical companies. The company’s earnings will come under significant pressure in the coming years if its top-selling drug, Humira, loses patent protection in 2023. Accordingly, AbbVie’s future revenues and profits depend in large part on its ability to generate new revenue streams to offset Humira’s lost sales. Rinvoq — an anti-inflammatory drug made by AbbVie and used to treat rheumatoid arthritis (RA) and other diseases by inhibiting Janus kinase (JAK) enzymes — has been touted as one such drug. Rinvoq was originally approved in the United States only for the treatment of moderate to severe RA. However, AbbVie was actively pursuing additional treatment indications, and in 2020 it applied to the U.S. Food and Drug Administration (FDA) for approval of Rinvoq for the treatment of several other diseases.

As relevant here, Rinvoq is similar to other JAK inhibitor drugs, including Xeljanz, manufactured by Pfizer Inc. When the FDA approved Xeljanz for the treatment of RA in 2012, an additional safety study was required to determine Xeljanz’s risk of causing certain serious side effects , evaluate impact. As of February 2019, the FDA repeatedly warned the public that the safety study indicated that use of Xeljanz could lead to serious heart problems, cancer, and other adverse events. Notwithstanding the similarities between Rinvoq and Xeljanz, defendants assured investors during the Class Period that Rinvoq was far safer than Xeljanz and did not face the same regulatory risks.

However, investors began to learn the truth about Rinvoq’s significant risks on June 25, 2021, when AbbVie announced that the FDA was delaying its review of expanded treatment applications for Rinvoq due to safety concerns surrounding Xeljanz. As a result of this news, AbbVie common stock fell $1.76 per share, or approximately 1.5%, from a closing price of $114.74 per share on June 24, 2021 to $112.98 per share on June 25, 2021 .

Then, on September 1, 2021, the FDA announced that the final results of the Xeljanz safety study found an increased risk of serious adverse events even with low doses of Xeljanz. As a result, the FDA decided it would need new and updated warnings for Xeljanz and Rinvoq because Rinvoq “shares[s] similar mechanisms of action to Xeljanz” and “may have similar risks as observed in the Xeljanz safety study.” The FDA also said it would further limit approved indications for Rinvoq due to these safety concerns. AbbVie’s common stock fell 8 $.51 per share, or more than 7%, from a closing price of $120.78 per share on August 31, 2021 to a closing price of $112.27 per share on September 1, 2021.

After the class action period, on December 3, 2021, AbbVie announced that the FDA updated Rinvoq’s label to require additional safety warnings and to limit the marketing of Rinvoq to its use after treatment failure with other drugs. On January 11, 2022, the defendants admitted that these Rinvoq label changes would negatively impact sales, forcing the company to reduce its long-term guidance for Rinvoq’s sales in 2025.

The Complaint alleges that the Defendants made materially false and/or misleading statements about the Company’s business and operations throughout the Class Period. Specifically, the defendants misrepresented and/or failed to disclose: (1) safety concerns related to Xeljanz that extended to Rinvoq and other JAK inhibitors; (2) as a result, it was likely that the FDA would require additional safety warnings for Rinvoq and delay approval of additional treatment indications for Rinvoq; and (3) as a result, defendants’ statements about the Company’s business, operations and prospects were unfounded. As a result of the defendants’ wrongful acts and omissions and the significant decline in the market value of AbbVie’s securities, AbbVie investors have suffered significant damages.

For more information on AbbVie’s class action lawsuit, please visit: https://bespc.com/cases/ABBV

Playstudios, Inc. (NASDAQ:MYPS)

Class Period: June 22, 2021 – March 1, 2022

Lead Plaintiff Deadline: June 6, 2022

Playstudios has repeatedly told the market that its game Kingdom Boss has been “on track” throughout the year for a 2021 release. The company stated that it would realize significant revenues and gains from this launch, including representations related to the SPAC merger between the company and Acies Acquisition Corp. The company then announced on February 26, 2022 that Kingdom Boss was “suspended” indefinitely.

The lawsuit alleges that the defendants made materially false and/or misleading statements and/or failed to disclose the following: (i) Playstudios had significant problems with its flagship game, Kingdom Boss; (ii) Playstudios would not release Kingdom Boss as expected; and (iii) Playstudios had not revised its financial projections to reflect the problems it encountered with Kingdom Boss. As a result of the defendants’ wrongful conduct, the group members paid artificially inflated prices for their Playstudios securities and suffered significant losses and damages.

For more information on Playstudios’ class action lawsuit, visit: https://bespc.com/cases/MYPS

Twitter, Inc. (NYSE:TWTR)

Class Period: March 24, 2022 – April 1, 2022

Lead Plaintiff Deadline: June 13, 2022

Elon Musk, the founder of Tesla and Space-X and the richest person in the world according to Forbes, began buying shares in Twitter from January 2022. As of March 14, 2022, Musk had acquired more than a 5% equity interest in Twitter, prompting him to file a Schedule 13 filing with the United States Securities and Exchange Commission (“SEC”) within 10 days or by March 24, 2022 ) to submit.

Musk failed to file Schedule 13 with the SEC within the required time and instead continued to amass Twitter stock, ultimately acquiring a 9.1% stake in the company before finally filing Schedule 13 on April 4, 2022. By the time Musk filed the required Plan 13 disclosing his involvement with Twitter, the company’s stock had risen from a closing price of $39.31 per share on April 1, 2022 to a closing price of $49.97 per share on April 4, 2022 April 2022 – an increase of about 27%.

Investors who sold shares of Twitter Stock between March 24, 2022 and prior to the actual disclosure on April 4, 2022 missed out on the resulting stock price rise as the market reacted to Musk’s purchases. By failing to disclose his interest in a timely manner, Musk was able to purchase Twitter stock at a lower price during the class action period.

For more information on the Twitter class action, visit: https://bespc.com/cases/TWTR

About Bragar Eagle & Squire, PC:

Bragar Eagel & Squire, PC 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, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com . attorney advertising. Previous results do not guarantee similar results.

Contact information:

Bragar Eagle & Squire, PC
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com

Primary logo

Leave a Comment