Kewaunee Scientific Corporation (KEQU)
Whether directors and officers of Kewaunee Scientific Corporation (KEQU) breached their fiduciary duties to the company and its shareholders.
Investigation
01/07/2022
Initial Lawsuit
01/07/2022
Lawsuit Progression
04/12/2022
Investigation regarding Goldman Sachs’ and Morgan Stanley’s sales of a large amount of Discovery, Inc. shares during the week of March 22, 2021, while, allegedly, in possession of material, non-public information.
04/06/2021
CNBC reports that Morgan Stanley sold about $5 billion of shares in connection with Archegos’ bets to a small group of hedge funds on March 25, 2021 while failing to disclose material information.
“Morgan Stanley sold about $5 billion in shares from Archegos’ doomed bets on U.S. media and Chinese tech names to a small group of hedge funds late Thursday, March 25, according to the people, who requested anonymity to speak frankly about the transaction. . . .
But the investment bank had information it didn’t share with the stock buyers: The basket of shares it was selling, comprised of eight or so names including Baidu and Tencent Music, was merely the opening salvo of an unprecedented wave of tens of billions of dollars in sales by Morgan Stanley and other investment banks starting the very next day. . . .
That means that at least some bankers at Morgan Stanley knew the extent of the selling that was likely and that Hwang’s firm [Archegos] was unlikely to be saved, these people contend. That knowledge helped Morgan Stanley and rival Goldman Sachs avoid losses because the firms quickly disposed of shares tied to Archegos.“
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$43.38 | $41.64 | $1.74 | 4.18% |
Plaintiff brings this securities class action lawsuit on behalf of all investors who purchased or otherwise acquired Discovery Series A (NASDAQ: DISCA) or Discovery Series C (NASDAQ: DISCK) common stock contemporaneously with Goldman Sachs’ and Morgan Stanley’s unlawful trades from March 22, 2021 through and including March 29, 2021.
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) Goldman Sachs and Morgan Stanley sold a large mount of Discovery, Inc. shares during the class period while in possession of material, non-public information about Archegos, and its need to fully liquidate its position in Discovery, Inc. because of margin call pressure;
(ii) as a result of these sales, Goldman Sachs and Morgan Stanley avoided billions in losses combined.
04/12/2022
The court issued an order appointing the lead plaintiff and lead counsel.
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