NEW YORK, Jan. 22, 2020 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that class action lawsuits have been commenced on behalf of stockholders of Mohawk Industries, Inc. (NYSE: MHK), 500.com Limited (NYSE: WBAI), and Portola Pharmaceuticals, Inc. (NASDAQ: PTLA). 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.
Mohawk Industries, Inc. (NYSE: MHK)
Class Period: April 28, 2017 to July 25, 2019
Lead Plaintiff Deadline: March 3, 2020
Through a series of corrective disclosures between July 26, 2018 and July 26, 2019, Mohawk reported disappointing financial results and reduced production to control inventory levels and match its supply with waning customer demand. These disclosures caused the price of Mohawk shares to decline significantly.
The complaint, filed on January 3, 2020, alleges that throughout the Class Period defendants made false and misleading statements about Mohawk’s sales growth and the demand for the Company’s conventional flooring products. The complaint also alleges that defendants falsely reassured investors about the Company’s increasing accounts receivable and inventory levels during the Class Period by deceptively attributing those increases to external factors like rising raw material costs and inflation. According to the complaint, in truth, defendants were engaging in fraudulent channel stuffing, booking fictitious sales of its flooring products.
To learn more about the Mohawk class action go to: https://bespc.com/mhk
500.com Limited (NYSE: WBAI)
Class Period: April 27, 2018 to December 31, 2019
Lead Plaintiff Deadline: Mach 16, 2020
On December 31, 2019, the Company disclosed an internal investigation regarding alleged illegal money transfers after one of its former directors was arrested. 500.com also announced that its Chairman of the Board of Directors resigned and that its Chief Executive Officer would “step aside” from his position until the investigation concluded.
On this news, the Company’s share price fell as much as $0.94 per share, nearly 11% on January 2, 2020, thereby injuring investors.
The complaint, filed on January 15, 2020, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) 500.com executives and consultants engaged in a bribery scheme with Japanese officials in an effort to gain favor in a bid to run an upcoming Japanese casino resort; (2) consequently, 500.com was in violation of Japanese anti-bribery laws and its Code of Ethics; and (3) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
To learn more about the 500.com class action go to: https://bespc.com/wbai
Portola Pharmaceuticals, Inc. (NASDAQ: PTLA)
Class Period: November 5, 2019 to January 9, 2020
Lead Plaintiff Deadline: March 16, 2020
On January 9, 2020, Portola announced preliminary net revenues of only $28 million for the fourth quarter of 2019. Portola attributed the result to a $5 million reserve adjustment for short-dated product, and flat quarter-over-quarter demand.
On this news, Portola’s share price fell $9.98, or 40%, to close at $14.76 per share on January 10, 2020.
The complaint, filed on January 16, 2020, 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: (1) that Portola’s internal control over financial reporting regarding reserve for product returns was not effective; (2) that Portola was shipping longer-dated product with 36-month shelf life; (3) that Portola had not established adequate reserve for returns of prior shipments of short-dated product; (4) that, as a result, Portola was reasonably likely to need to “catch up” on accounting for return reserves; and (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.
To learn more about the Portola class action go to: https://bespc.com/ptla
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. 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.
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
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