
Amicus Therapeutics, Inc. (FOLD)
Whether directors and officers of Amicus Therapeutics, Inc. (FOLD) breached their fiduciary duties to the company and its shareholders.
Investigation
03/19/2021
Initial Lawsuit
03/19/2021
Lawsuit Progression
01/21/2022
Did Root mislead investors about its positive cash flow, competitive advantage, and need for cash infusions post-IPO? Was the initial public offering (IPO) misleading?
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A lawsuit was subsequently filed. We update this post regularly.
12/01/2020
Root issues a press release announcing its third quarter 2020 financial and operating results—the company’s first financial release following the IPO. Root reported third quarter earnings per share under generally accepted accounting principles (GAAP) of -$2.20 per share, missing consensus estimates by $1.79 per share, as well as revenues of $50.5 million, or down 36.6% year-over-year, missing consensus estimates by $19.28 million.
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$14.7 | $17 | $-2.3 | -13.53% |
A Root investor filed a federal securities class action on behalf of a class consisting of all persons and entities other than defendants that purchased or otherwise acquired: (a) Root securities between October 28, 2020, and March 8, 2021, both dates inclusive; and/or (b) Root Class A common stock pursuant and/or traceable to the company’s offering documents filed during the initial public offering (IPO) conducted on or about October 28, 2020.
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) Root would foreseeably fail to generate positive cashflow for at least several years following the IPO;
(ii) accordingly, the Company would foreseeably require significant cash infusions to meet its cash flow needs;
(iii) not with standing the Defendants’ touting of Root’s purportedly unique, data-driven advantages, several of the Company’s established industry peers in fact possessed significant competitive advantages over Root with respect to, inter alia, telematics data and data engagement;
(iv) as a result, the Offering Documents and Defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.
01/21/2022
The court issued an order appointing the lead plaintiff and lead counsel.
11/13/2021
This is a federal securities class action on behalf of all those who purchased or otherwise acquired shares of the Class A common stock of Root from October 28, 2020 through August 12, 2021, inclusive.
Operative complaint
05/20/2022
A motion to dismiss was filed with the court.
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