NEW YORK, Oct. 10, 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 CS Disco, Inc. (NYSE: LAW), PureCycle Technologies, Inc. (NASDAQ: PCT), and GigaCloud Technology Inc. (NASDAQ: GCT). 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.
CS Disco, Inc. (NYSE: LAW)
Class Period: July 21, 2021 – August 11, 2022 (Common Stock Only)
Lead Plaintiff Deadline: November 20, 2023
The complaint alleges that during the Class Period, “CS Disco repeatedly touted strong growth in its revenues attributable to customer usage of its cloud-based electronic discovery platform and asserted that it had good advance visibility into changes in the demand from individual customers over time.” The complaint also alleges that “[w]hile the Company also acknowledged that its rapid revenue growth was ‘usage driven’ and may be subject to volatility, it did not inform investors during the Class Period that it had any indication of significant headwinds to its growth.”
The complaint further alleges that “[t]he truth began to emerge on August 11, 2022, when CS Disco released financial results for the second quarter of 2022 that shocked investors and analysts alike. Not only did the Company’s revenue growth taper drastically [as compared to] past quarters, but the Company alerted the markets that it would no longer be including in its guidance any revenues attributable to its largest customers for the entire year.” On August 12, 2022, CS Disco common shares fell 53% on heavy volume.
For more information on the CS Disco class action go to: https://bespc.com/cases/LAW
PureCycle Technologies, Inc. (NASDAQ: PCT)
Class Period: August 8, 2023 – September 13, 2023
Lead Plaintiff Deadline: November 28, 2023
The filed complaint alleges that defendants made false statements and/or concealed that: (1) the Ironton Facility experienced a full plant power outage on August 7, 2023; (2) there was a risk of additional failures resulting from the August 7, 2023 power outage; and (3) 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 PureCycle class action go to: https://bespc.com/cases/PCT
GigaCloud Technology Inc. (NASDAQ: GCT)
Class Period: (a) Class A ordinary shares pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s August 2022 initial public offering (“IPO” or the “Offering”); and/or (b) securities between August 18, 2022 and September 27, 2023
Lead Plaintiff Deadline: December 4, 2023
In August 2022, GigaCloud conducted its IPO, selling 3,381,000 Class A ordinary shares at $12.25 per share, receiving net proceeds of approximately $34.2 million.
On September 28, 2023, before the market opened, Culper Research published a report alleging “numerous glaring flaws” in GigaCloud’s public reporting. For example, the Report stated that while GigaCloud “claims to run 14 U.S. warehouses,” the Company “discloses just 73 employees in the entire U.S., implying just 5 employees per warehouse.” The Report also alleged that “GigaCloud’s marketing materials utilize photoshopped stock photos to portray itself as a highly efficient, growing operation,” but that Culper Research’s investigators visited some of the Company’s warehouses and discovered little activity. Further, the Report alleges that Culper Research uncovered “numerous entities which are neither named subsidiaries nor disclosed as GCT related parties” whose conduct at the very least “suggests undisclosed related party issues.”
On this news, the Company’s share price fell $1.78, or 18%, to close at $7.69 per share on September 28, 2023, on unusually heavy trading volume. By the commencement of this action, GigaCloud’s shares have closed as low as $4.27 per share, a 65% decline from the $12.25 per share IPO price.
The complaint filed in this class action alleges that in the Registration Statement and 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: (1) that the Company’s business is a fraction of what it publicly claims, as evidenced by staffing and activity levels at its warehouses; (2) that the Company overstated its last-mile operations; (3) that the Company engaged in undisclosed related party transactions; (4) that, as a result, the Company’s financial results were overstated; (5) 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 GigaCloud class action go to: https://bespc.com/cases/GCT
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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