
Amicus Therapeutics, Inc. (FOLD)
Whether directors and officers of Amicus Therapeutics, Inc. (FOLD) breached their fiduciary duties to the company and its shareholders.
Investigation
01/20/2021
Initial Lawsuit
01/20/2021
Lawsuit Progression
10/13/2021
Investigation focusing on 9F’s statements regarding the timing of its IPO, the dispute with Property and Casualty Company Limited (PICC) and the related 2019 increase in net account receivables from RMB180 million to RMB1.9 billion.
06/12/2020
9F files a report with the SEC to disclose a legal action filed by PICC and affiliates against the company to further explain the dramatic increase in net account receivables: “In 2019, under 9F’s direct lending program, PICC is obligated to pay service fees as agreed in the Cooperation Agreement to [9F’s affiliate] for its services. PICC paid a portion of service fees, but has failed to fulfil its remaining payment obligations for the rest of the service fees amounting to approximately RMB2.2 billion for a period covered under the Cooperation Agreement (the “Outstanding Service Fees”). With respect to RMB1.4 billion of the Outstanding Service Fees that has been recorded as accounts receivable, the Company has recognized full valuation allowance.“
Stock Impact
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Plaintiff brings this securities class action on behalf of persons who purchased or otherwise acquired the Company’s securities:
(1) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with 9F’s August 14, 2019 initial public offering (the “IPO” or “Offering”); and/or
(2) between August 14, 2019 and September 29, 2020, both dates inclusive.
According to the complaint, 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 allegedly failed to disclose to investors that:
(i) 9F’s provision for doubtful accounts receivable mainly related to accounts receivable with a single party, PICC;
(ii) 9F and PICC had been engaged in an ongoing contractual dispute regarding payment of service fees under the Cooperation Agreement;
(iii) PICC was challenging, delaying, and/or otherwise failing to pay service fees to 9F under the Cooperation Agreement;
(iv) the amount of service fees under the Cooperation Agreement that were unpaid or at serious risk of being unpaid was material and trending upward;
(v) as a result of the foregoing, the collectability of service fees owed to 9F by PICC under the
Cooperation Agreement was in doubt and at serious risk of non-payment; and
(vi) as a result of the foregoing, the Registration Statement had materially misrepresented the amount of 9F’s accounts receivable and materially understated the Company’s allowance for doubtful accounts.”
The complaint also alleges that:
(i) the purported value and benefits of the Company’s financial institution partners and its tri-party cooperation business model did not in fact exist and/or were materially overstated, given that 9F and PICC had been engaged in an ongoing contractual dispute regarding payment of service fees under the Cooperation Agreement;
(ii) the collectability of service fees owed to 9F by PICC under the Cooperation Agreement was in doubt and at serious risk of nonpayment;
(iii) there was a significant risk that PICC would no longer provide credit insurance and guarantee protection to investors and institutional funding partners; and
(iv) as a result of the foregoing, the Company’s platform, business model, reputation and financial results had been materially impaired.
10/13/2021
The court issued an order appointing the lead plaintiff and lead counsel.
01/03/2022
Plaintiff brings this securities class action on behalf of persons who purchased or otherwise acquired the company’s American depositary shares (ADSs): (1) pursuant and/or traceable to the registration statement and related prospectus issued in connection with 9F’s August 14, 2019 initial public offering (IPO); and/or (2) between August 14, 2019 and September 29, 2020, both dates inclusive.
Operative complaint
03/04/2022
A motion to dismiss was filed with the court.
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