Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Twitter, LMP, and Spero and Encourages Investors to Contact the Firm
News provided byBragar Eagel & Squire
Jun 03, 2022, 9:00 PM ET
NEW YORK, June 03, 2022 (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 Twitter, Inc. (NYSE: TWTR), LMP Automotive Holdings, Inc. (NASDAQ: LMPX), and Spero Therapeutics, Inc. (NASDAQ: SPRO). 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.
Twitter, Inc. (NYSE: TWTR)
Class Period: March 24, 2022 – April 1, 2022
Lead Plaintiff Deadline: June 13, 2022
Elon Musk, the founder of Tesla and Space-X, and according to Forbes, the richest person in the world, started to acquire shares of Twitter beginning in January 2022. By March 14, 2022, Musk had acquired more than a 5% ownership stake in Twitter, requiring him to file a Schedule 13 with the United States Securities and Exchange Commission (“SEC”) within 10 days, or March 24, 2022.
Musk did not file a Schedule 13 with the SEC within the required time and instead continued to amass Twitter shares, eventually acquiring a 9.1% stake in the Company before finally filing a Schedule 13 on April 4, 2022. By the time Musk filed the required Schedule 13, revealing his ownership stake in Twitter, the Company’s share rose from a closing price of $39.31 per share on April 1, 2022, to close at $49.97 per share on April 4, 2022 – an increase of approximately 27%.
Investors who sold shares of Twitter Stock between March 24, 2022, and before the actual April 4, 2022 disclosure, missed the resulting share price increase as the market reacted to Musk’s purchases. By failing to timely disclose his ownership stake, Musk was able to acquire shares of Twitter less expensively during the Class Period.
For more information on the Twitter class action go to: https://bespc.com/cases/TWTR
LMP Automotive Holdings, Inc. (NASDAQ: LMPX)
Class Period: June 29, 2021 – May 19, 2022
Lead Plaintiff Deadline: July 26, 2022
On November 16, 2021, after the market closed, LMP filed a notification of inability to timely file its quarterly report for third quarter 2021. It also identified several material weaknesses in its internal control over financial reporting, including that “[t]he Company did not maintain a formalized set of accounting policies” and “[t]he Company did not maintain effective controls over the review and approval of journal entries, account reconciliations, review of significant accounts and disclosures, and adequate documentation of management assumptions, estimates and judgments.”
On this news, the Company’s stock price fell $0.74, or 5.5%, to close at $12.66 per share on November 17, 2021.
Then, on March 31, 2022, LMP revealed that it could not timely file its fiscal 2021 annual report “primarily [as] a result of its ongoing evaluation of (i) the proper identification and elimination of intercompany transactions, (ii) estimates of chargeback reserves for finance and insurance products and (iii) various financial presentation matters related to the Company’s business, including as it relates to the presentation, characterization and amounts of such items in prior fiscal quarters.”
On this news, the Company’s stock price fell $0.19, or 3.8%, to close at $4.81 per share on April 1, 2022.
Then, on May 17, 2022, after the market closed, LMP disclosed that it could not timely file its Q1 2021 quarterly report due to the previously announced ongoing evaluation. LMP further disclosed that due to errors in the Company’s quarterly reports during fiscal year 2021, such reports “will likely need to be restated.” The Company also disclosed that these errors may impact “certain previously disclosed material weaknesses in the registrant’s controls over financial reporting.”
On this news, the Company’s stock price fell $0.07 per share, or 1.5%, to close at $4.60 per share on May 18, 2022.
Then, on May 19, 2022, after the market closed, LMP revealed that it would restate the financial statements for quarterly periods in fiscal 2021 “primarily due to the following errors: (i) the improper identification and elimination of intercompany transactions, (ii) incorrect estimates of chargeback reserves for finance and insurance products, and (iii) certain financial statement misclassifications impacting various balance sheet and income statement financial statement captions in the Relevant Periods.” These results caused a decrease in total revenues up to $15 million for third quarter 2021, up to $8 million for second quarter 2021, and up to $1 million for first quarter 2021. As a result, the Company stated that “material weaknesses exist in the Company’s internal control over financial reporting and that the Company’s disclosure controls and procedures were not effective.”
On this news, the Company’s stock price fell $0.20 per share, or 4.4%, to close at $4.26 per share on May 20, 2022.
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 the Company engaged in the improper identification and elimination of intercompany transactions; (2) that the Company used incorrect estimates for chargeback reserves for finance and insurance products; (3) that the Company had misclassified certain items in its financial statements which impacted balance sheet and income statement financial statement captions; (4) that there were material weaknesses in LMP’s internal control over financial reporting; (5) that, as a result of the foregoing, the Company overstated its revenue; (6) that, as a result of the foregoing, the Company would restate certain of its previously issued financial statements and results; and (7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For more information on the LMP class action go to: https://bespc.com/cases/LMPX
Spero Therapeutics, Inc. (NASDAQ: SPRO)
Class Period: October 28, 2021 – May 2, 2022
Lead Plaintiff Deadline: July 25, 2022
Spero, a clinical-stage biopharmaceutical company, focuses on identifying, developing, and commercializing treatments for multi-drug resistant bacterial infections and rare diseases in the United States. The Company's product candidates include Tebipenem Pivoxil Hydrobromide (HBr), an oral carbapenem-class antibiotic to treat complicated urinary tract infections, including pyelonephritis for adults.
On October 28, 2021, Spero announced that it had submitted a New Drug Application (“NDA”) to the U.S. Food and Drug Administration (“FDA”) for Tebipenem HBr for the Treatment of Complicated Urinary Tract Infections including Pyelonephritis (the “Tebipenem HBr NDA”).
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the data submitted in support of the Tebipenem HBr NDA were insufficient to obtain FDA approval; (ii) accordingly, it was unlikely that the FDA would approve the Tebipenem HBr NDA in its current form; (iii) the foregoing would necessitate a significant workforce reduction and restructuring of Spero’s operations; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On March 31, 2022, Spero issued a press release announcing the Company’s fourth quarter and full year 2021 financial results. In the press release, Spero disclosed that “[t]he U.S. Food and Drug Administration (FDA) has notified Spero that, as part of its ongoing review of Spero’s New Drug Application (NDA) for tebipenem HBr, it has identified deficiencies that preclude discussion of labeling and post-marketing requirements/commitments at this time.”
On this news, Spero’s stock price fell $1.59 per share, or 18.27%, to close at $7.11 per share on April 1, 2022.
Then on May 3, 2022, Spero issued a press release announcing “that it will immediately defer current commercialization activities for tebipenem HBr based on feedback from a recent Late Cycle Meeting with the U.S. Food and Drug Administration (FDA) regarding Spero’s New Drug Application (NDA) for tebipenem HBr[,]” and that, “[a]lthough the review is still ongoing and the FDA has not yet made any final determination regarding approvability, the discussion suggested that the data package may be insufficient to support approval during this review cycle.” Specifically, the FDA advised the Company, in relevant part, that the FDA’s separate analysis of the relevant study population had “reduce[d] the number of evaluable patients in the primary analysis population compared with those resulting from the trial’s pre-specified micro-ITT population as outlined in the statistical analysis plan and [a]s a result, the FDA considers that the pre-specified non-inferiority margin of -12.5% was not met.” Further, the press release advised that, “[i]n connection with this development, Spero announced that it is undertaking a reduction in its workforce by approximately 75% and a restructuring of its operations to reduce operating costs and reallocate resources.”
On this news, Spero’s stock price fell $3.24 per share, or 63.65%, to close at $1.85 per share on May 3, 2022.
For more information on the Spero class action go to: https://bespc.com/cases/SPRO
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.