
Inari Medical, Inc. (NARI)
Whether directors and officers of Inari Medical, Inc. (NARI) breached their fiduciary duties to the company and its shareholders.
Investigation
12/10/2021
Initial Lawsuit
12/10/2021
Lawsuit Progression
04/08/2022
Investigation regarding Cloopen’s statements made in connection with its initial public offering (IPO) about the value of pre-IPO warrants, its growth strategy and existing users.
03/26/2021
Cloopen releases its Q4 2020 and fiscal year 2020 financial results. Cloopen reported 4Q 2020 revenues of RMB258.7 million ($39.6 million), net losses of RMB305.4 million ($46.8 million), representing a 466.9% increase year-over-year, and operating expenses of RMB180.4 million ($27.6 million), representing a 30% increase from the 4Q 2019 (RMB138.8 million).
The company explained that the results were “primarily driven by increases in non-cash items of RMB240.1 million (US$36.8 million), including change in fair value of warrant liabilities of RMB224.8 million (US$34.4 million) and share-based compensation of RMB15.4 million (US$2.4 million).”
The company also disclosed that General and administrative expenses increased by 90.1% to RMB205.9 million (US$31.6 million) from RMB108.3 million in 2019 because of, among other reasons, “a significant increase in provision for doubtful accounts resulting from an increase in accounts receivables”.
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$11.75 | $14.42 | $-2.67 | -18.52% |
This is a securities class action on behalf of all persons who:
(a) purchased or otherwise acquired Cloopen American Depositary Shares (ADSs) pursuant and/or traceable to the registration statement and prospectus issued in connection with the company’s February 2021 initial public offering (IPO); and/or
(b) purchased or otherwise acquired Cloopen securities between February 9, 2021 and May 10, 2021, 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:
(a) due to the fact that Cloopen had valued [certain] warrants at extremely low levels, Cloopen had massive additional costs associated with the warrants that needed to be recognized;
(b) Cloopen’s growth strategy was not working and that its existing customers were: (i) leaving; (ii) dramatically decreasing their usage of Cloopen’s solutions, so much so that the company’s dollar-based net retention rate fell significantly below the company’s historical levels; and (iii) increasingly failing to pay for the services or solutions that Cloopen rendered;
(c) an increasing number of customers were not paying Cloopen for the services and/or solutions it provided, forcing Cloopen to recognize massive increases in its accounts receivables and its allowance for doubtful accounts, the latter of which reflects Cloopen’s determination that these accounts were uncollectible.
04/08/2022
The court issued an order appointing the lead plaintiff and lead counsel.
05/31/2022
Operative complaint
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