NEW YORK, July 04, 2024 (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 Cambium Networks Corporation (NASDAQ: CMBM), Enphase Energy, Inc. (NASDAQ: ENPH), Hertz Global Holdings, Inc. (NASDAQ: HTZ), and FAT Brands Inc. (NASDAQ: FAT). 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.
Cambium Networks Corporation (NASDAQ: CMBM)
Class Period: May 8, 2023 – January 18, 2024
Lead Plaintiff Deadline: July 22, 2024
On August 1, 2023, after the market closed, Cambium reported that second quarter 2023 revenue fell 23% sequentially due to “higher channel inventories” that resulted in “lower demand for Enterprise products.” As a result, the Company reduced its fiscal 2023 guidance, now expecting revenue to decline 7% to 11% year-over-year. The Company also announced that the Company’s Chief Executive Officer, Atul Bhatnagar, would step down immediately.
On this news, the price of Cambium shares declined by $4.89 per share, or 30.07%, to close at $11.37 per share on August 2, 2023, on unusually heavy trading volume.
Then, on October 4, 2023, after the market closed, Cambium announced preliminary third quarter 2023 revenue “between $40.0-$45.0 million compared to the previous outlook of $62.0-$70.0 million[.]” The Company attributed the shortfall to, in part, “a decrease in orders and an increase in stock rotations from distributors in the Enterprise business” and “pressure” from “channel inventories.”
On this news, the price of Cambium shares declined by $2.87 per share, or 36.2%, to close at $5.05 per share on October 5, 2023, on unusually heavy trading volume.
Then, on January 18, 2024, after the market closed, Cambium revealed that preliminary fourth quarter 2023 revenue was expected to be “approximately $40.0 million compared to the previous outlook of $45.0-$50.0[.]” The Company attributed the revenue shortfall to “offering aggressive Enterprise product discounts to clear excess channel inventories.” The Company further revealed “gross margin will also be below the low end of the range due to increased excess and obsolete inventory reserves.” Moreover, the Company’s Chief Financial Officer would depart Cambium on February 2, 2024.
On this news, the price of Cambium shares declined by $0.60 per share, or 12.40%, to close at $4.24 per share on January 19, 2024, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that there was a buildup of inventory in the Company’s distribution channels; (2) that the Company and its distributors were reasonably likely to offer aggressive discounts to reduce the high channel inventories; (3) that the Company’s revenue would decline sequentially until the excess channel inventory was sold through; (4) that Cambium was likely to incur significant charges to writedown excess and obsolete inventory; (5) that, as a result of the foregoing, the Company’s fiscal 2023 revenue and earnings would be adversely affected; and (6) 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.
For more information on the Cambium class action go to: https://bespc.com/cases/CMBM
Enphase Energy, Inc. (NASDAQ: ENPH)
Class Period: February 7, 2023 – April 25, 2023
Lead Plaintiff Deadline: July 29, 2024
According to the complaint, defendants created the false impression that they possessed reliable information pertaining to the Company’s projected revenue outlook and anticipated growth while also minimizing risk from seasonality and macroeconomic fluctuations. In truth, Enphase had been experiencing a decrease in battery shipments to Europe and California, slowdown in battery deployment and adoption, longer transition period with NEM 3.0, and slower output of inverters manufactured by the new US base manufacturing lines. Defendants misled investors by providing the public with materially flawed revenue outlook for fiscal 2023.
Plaintiff alleges that on April 25, 2023, Enphase announced its first quarter earnings, stating revenue in the United States had decreased by approximately 9% attributing it to macroeconomic conditions. Additionally, defendants put out a weak second quarter outlook for 2023 where revenue was estimated to be within the range of $700 million to $750 million. On this news, the price of Enphase’s common stock declined dramatically. From a closing market price of $220.60 per share on April 25, 2023, Enphase’s stock price fell to $163.83 per share on April 26, 2023, a decline of nearly 26% in the span of just a single day.
For more information on the Enphase class action go to: https://bespc.com/cases/ENPH
Hertz Global Holdings, Inc. (NASDAQ: HTZ)
Class Period: April 27, 2023 – April 24, 2024
Lead Plaintiff Deadline: July 30, 2024
Hertz is a vehicle rental company that offers both internal combustion engine (“ICE”) vehicle and electric vehicle (“EV”) rental services from Company-operated, licensee, and franchisee locations across various countries. The Company also sells vehicles and value-added services.
With hundreds of thousands of vehicles in its rental fleet, accurately measuring vehicle depreciation—i.e., the decrease in value of the various vehicles in its fleet over time—is critical to Hertz’s profitability.
In October 2021, Hertz announced that, “[a]s consumer interest in [EVs] skyrockets,” the Company made “a significant investment to offer the largest EV rental fleet in North America and one of the largest in the world[,]” including “an initial order of 100,000 Teslas by the end of 2022 and new EV charging infrastructure across the company’s global operations.” The Company thereafter entered into multiple strategic partnerships with cities and others to promote its EV rental business, and concurrently continued to expand its EV fleet.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Hertz had downplayed the financial impact of vehicle depreciation, and/or overstated its ability to track and manage vehicle depreciation; (ii) demand for Hertz’s EVs was not as strong as Defendants had led investors to believe; (iii) Hertz had too many vehicles, particularly EVs, in its fleet to remain profitable; (iv) as a result of all the foregoing, Hertz was likely to incur significant losses on the disposition of both its ICE vehicles and EVs; (v) all the foregoing was likely to, and did, have a significant negative impact on Hertz’s financial results; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On January 11, 2024, Hertz revealed in a filing with the U.S. Securities and Exchange Commission that it would sell approximately 20,000 EVs from its U.S. fleet, or about one-third of its global EV fleet, “to better balance supply against expected demand of EVs.” According to the Company, this would “result in the recognition, during the fourth quarter of 2023, of approximately $245 million of incremental net depreciation expense related to the sale[,]” which “represents the write down of the EVs’ carrying values as of December 31, 2023 to their fair values, less related expenses associated with the disposition of the vehicles.” Hertz further advised that “Adjusted Corporate EBITDA for the fourth quarter of 2023 will be negatively impacted by the incremental net depreciation expense associated with the EV sales plan, and further burdened by higher depreciation expense in the ordinary course as residual values for vehicles generally fell throughout the quarter greater than previously expected.”
On this news, Hertz’s stock price fell $0.40 per share, or 4.28%, to close at $8.95 per share on January 11, 2024.
On March 15, 2024, Hertz announced that Defendant Stephen M. Scherr (“Scherr”) would resign from his roles as the Company’s Chief Executive Officer (“CEO”) and Chairman of the Board of Directors by the end of the month, and that the Company had appointed Wayne Gilbert West as its new CEO.
Then, on April 25, 2024, Hertz issued a press release announcing its first quarter 2024 results. Among other items, Hertz reported adjusted diluted earnings-per-share (“EPS”) of -$1.28 for the quarter, well short of the consensus estimate of -$0.43, and far worse than the adjusted diluted EPS of $0.39 that the Company had achieved in the same period the year prior. In discussing these results, Hertz revealed that vehicle depreciation in the quarter increased $588 million, or $339 on a per-unit basis, primarily driven by deterioration in estimated forward residual values and disposition losses on ICE vehicles compared to gains in the prior-year quarter. The Company also disclosed that, of the $339 per unit increase, $119 was related to EVs held for sale. Moreover, Hertz reported a $195 million charge to vehicle depreciation to write down EVs held for sale that were remaining in inventory at quarter-end to fair value and to recognize the disposition losses on EVs sold in the period.
On this news, Hertz’s stock price fell $1.12 per share, or 19.31%, to close at $4.68 per share on April 25, 2024.
For more information on the Hertz class action go to: https://bespc.com/cases/HTZ
FAT Brands Inc. (NASDAQ: FAT)
Class Period: March 24, 2022 – May 10, 2024
Lead Plaintiff Deadline: August 6, 2024
According to the lawsuit, defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) defendants failed to disclose that Andrew A. Wiederhorn, the Company’s Chairman and former CEO, had received improper payments from the Company, exposing FAT Brands to criminal liability; and (2) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.
For more information on the Fat Brands class action go to: https://bespc.com/cases/FAT
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.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
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