Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against DiDi, RenovaCare, Live Ventures, and Annovis Bio and Encourages Investors to Contact the Firm
NEW YORK, Aug. 25, 2021 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of DiDi Global Inc. (NYSE: DIDI), RenovaCare, Inc. (Other OTC: RCAR), Live Ventures Incorporated (NASDAQ: LIVE) and Annovis Bio, Inc. (NYSE: ANVS). 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.
DiDi Global, Inc. (NYSE: DIDI)
Class Period: June 2021 IPO; June 27, 2021 to July 21, 2021
Lead Plaintiff Deadline: September 7, 2021
On or about June 30, 2021, DiDi Global completed its IPO, issuing 316.8 million American Depositary Shares at $14.
Within days, on July 2, 2021, the company disclosed China’s Cyberspace Administration Office is conducting a cybersecurity review of the company and required it to suspend new user registration in China.
On July 4, 2021, the Company issued a press release entitled “DiDi Announces App Takedown in China” which announced that: “the CAC [Cyberspace Administration of China] stated that it was reported and confirmed that the ‘DiDi Chuxing’ app had the problem of collecting personal information in violation of relevant PRC laws and regulations.” The press release further stated that “[p]ursuant to the PRC's Cybersecurity Law, the CAC notified app stores to take down the ‘DiDi Chuxing’ app in China[.]”
On July 5, 2021, the Wall Street Journal published an article entitled “Chinese Regulators Suggested Didi Delay Its U.S. IPO: Ride-hailing giant, under pressure to reward shareholders, pushed ahead with NYSE listing despite concerns of China’s cybersecurity watchdog” which reported, among other things, that “[w]eeks before Didi Global Inc. [] went public in the U.S., China’s cybersecurity watchdog suggested the Chinese ride-hailing giant delay its initial public offering and urged it to conduct a thorough self-examination of its network security[.]”
On this news, the Company’s American Depositary Shares (“ADS”) price fell $3.04 per ADS, or nearly 20%, to close at $12.49 per ADS on July 6, 2021, the next trading day.
On May 28, 2021, the United States Securities and Exchange Commission (“SEC”) issued a litigation release stating that RenovaCare was being charged with alleged securities fraud. According to the SEC’s complaint, between July 2017 and January 2018, the Company’s controlling shareholder and Chairman, Harmel Rayat (“Rayat”), “arranged, and caused RenovaCare to pay for, a promotional campaign designed to increase the company’s stock price.” Specifically, “Rayat was closely involved in directing the promotion and editing promotional materials, and arranged to funnel payments to the publisher through consultants to conceal RenovaCare’s involvement in the campaign.” When OTC Markets Group, Inc. requested that RenovaCare explain its relationship to the promotion, the complaint alleges that “Rayat and RenovaCare then drafted and issued a press release and a Form 8-K that contained material misrepresentations and omissions denying Rayat’s and the company’s involvement in the promotion.”
On this news, the Company’s stock price fell $0.66, or 24.8%, over three consecutive trading sessions to close at $2.00 per share on June 2, 2021.
The complaint filed in this class action 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, at the direction of Rayat, RenovaCare engaged in a promotional campaign to issue misleading statements to artificially inflate the Company’s stock price; (2) that, when the OTC Markets inquired, RenovaCare and Rayat issued a materially false and misleading press release claiming that no director, officer, or controlling shareholder had any involvement in the purported third party’s promotional materials; (3) that, as a result of the foregoing, the Company’s disclosure controls and procedures were defective; and (4) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
On August 3, 2021, the U.S. Securities and Exchange Commission ("SEC") filed a complaint against Live Ventures, its Chief Executive Officer, and its Chief Financial Officer alleging "multiple financial, disclosure, and reporting violations related to inflated income and earnings per share, stock promotion and secret trading, and undisclosed executive compensation." Specifically, the SEC alleged that Live Ventures had recorded income from a backdated contract, which increased pre-tax income for fiscal 2016 by 20%, and understated its outstanding share count, which overstated earnings per share by 40%.
On this news, the Company’s share price fell $29.08, or 46%, to close at $33.50 per share on August 4, 2021, on unusually heavy trading volume.
The stock price continued to decline $7.74, or 23%, over the next four consecutive trading sessions to close at $25.76 per share on August 10, 2021
The complaint filed in this class action 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 Live’s earnings per share for FY 2016 was actually only $6.33 per share; (2) that the Company used an artificially low share count to boost the earnings per share by 40%; (3) that Live had overstated pre-tax income for fiscal 2016 by 20% by including $915,500 of "other income" related to certain amendments that were not negotiated until after the close of the fiscal year; (4) that Live’s acquisition of ApplianceSmart did not close during first quarter 2017; (5) that using December 30, 2017 as the "acquisition date" and recognizing income therefrom did not conform to generally accepted accounting principles; (6) that, by falsely stating that the acquisition closed during the quarter, Live recognized bargain purchase gain, which enabled the Company to report positive net income in what would otherwise have been an unprofitable quarter; (7) that between fiscal 2016 and fiscal 2018, Live’s CEO received approximately 94% more in compensation than was disclosed to investors; and (8) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
On July 28, 2021, after the market closed, Annovis reported interim clinical data from its Phase 2a trial. Among other things, the Company reported that AD patients 25 days after treatment failed to show statistically significant improvement compared to the placebo. Annovis also reported that, although patients showed cognitive improvements in certain areas, the results were not statistically significant.
On this news, the Company’s share price fell $65.94, or 60%, to close at $43.50 per share on July 29, 2021, on unusually heavy trading volume.
The complaint filed in this class action 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 Annovis’s ANVS401 did not show statistically significant results across two patient populations as to factors such as orientation, judgement, and problem solving; and (2) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
About Bragar Eagel & Squire, P.C.: Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. 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.
