ABBV LAWSUIT: Vincent Wong Law Firms Notifies Investors of Class Action Lawsuit Involving AbbVie Inc

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Course period: May 7, 2021 – February 25, 2022

Lead applicant deadline: June 14, 2022

Aurinia is a biopharmaceutical company that develops and commercializes therapies to treat various diseases with unmet medical needs in Japan and the People’s Republic of China (“China”). The Company’s only product is LUPKYNIS, which it offers for the treatment of adult patients with active lupus nephritis.

Throughout the Class Period, Defendants have made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Aurinia was experiencing a decline in revenue; (ii) Aurinia’s sales prospects for LUPKYNIS in 2022 would be well below expectations; (iii) as a result, the Company had grossly overestimated LUPKYNIS’ business prospects; (iv) as a result, the Company had exaggerated its financial situation and/or its outlook for 2022; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.

On February 28, 2022, Aurinia issued a press release announcing its financial results for the quarter and year ended December 31, 2021. Among other items, Aurinia reported lower year-over-year revenue and announced revenue below expectations. outlook for 2022.

On this news, Aurinia’s common stock price fell $3.94 per share, or 24.26%, to close at $12.30 per share on February 28, 2022.

Due to the wrongful acts and omissions of the defendants and the precipitous decline in the market value of the company’s securities, the plaintiff and the other class members suffered significant losses and damages.

For more information on the Aurinia class action, please visit: https://bespc.com/cases/AUPH

Stronghold Digital Mining, Inc. (NASDAQ:SDIG)

Class Period: October 22, 2021 IPO

Lead applicant deadline: June 13, 2022

In October 2021, the Company completed its IPO, selling 7,690,400 shares of Class A common stock at $19.00 per share.

On March 29, 2022, after market close, Stronghold announced its fourth quarter and full year 2021 financial results. The company reported a net loss of $0.52 for the quarter, below analyst estimates of $0.04 in earnings per share, and Stronghold’s CEO cited “significant headwinds in our operations that have had a significant impact on recent financial performance.”

On this news, the company’s stock price fell $3.28, or 32%, to close at $6.97 per share on March 30, 2022. As of April 14, 2022, Stronghold stock fell was trading as low as $4.78 per share, a more than 75% drop from the IPO price of $19 per share.

The complaint filed in this class action alleges that the registration statement was materially false and misleading and failed to state: (1) that contracted suppliers, including MinerVa, were reasonably likely to miss quantities and deadlines scheduled deliveries; (2) that due to the high demand and pre-sold supply of mining equipment in the industry, Stronghold would have difficulty obtaining miners outside of confirmed purchase orders; (3) that as a result of the foregoing, there was a significant risk that Stronghold would not be able to expand its mining capacity as planned; (4) that as a result, Stronghold would likely suffer significant losses; and (5) 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.

For more information about the Stronghold class action, go to: https://bespc.com/cases/SDIG

Lilium NV (NASDAQ: LILM)

Course period: March 30, 2021 – March 14, 2022

Lead Applicant Deadline: June 17, 2022

On March 14, 2022, Iceberg Research published a short report entitled “Lilium NV – The Losing Horse in the eVTOL [electric vertical take-off and landing aircraft] race” (the “Iceberg Report”). The Iceberg Report claimed, among other things, that “[m]no expert has raised serious doubts about “the viability of the Company’s Lilium Jet achieving its goal of “flying[ing] up to 155 miles[,]citing “its configuration of 36 ducted fans (recently reduced to 30) which guzzle energy during takeoff and landing (hovering), and leave little power for actual flight.” The Iceberg report also noted that if “Lilium promises that its Jet has easy access to battery cells with an energy density of 320-330 Wh/kg[,]” “[o]ne of the sources on which he relies to show that these batteries are at hand is . . . an associated company 34.8% owned by Lilium whose CEO Sujeet Kumar has been accused by General Motors of misrepresenting battery performance, while working at his former company Envia Systems. Lilium in 2015” and “estimated[d] that Lilium has about 18 months before its cash runs out.”

On this news, Lilium’s stock price fell $1.25 per share, or 33.88%, to close at $2.44 per share on March 14, 2022.

According to the lawsuit, the defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) Lilium materially exaggerates the design and capabilities of the Lilium Jet; (2) Lilium significantly overestimates the likelihood of early certification of the Lilium Jet; (3) Lilium misrepresents its ability to obtain or create the batteries needed for the Lilium Jet; (4) the SPAC merger would not and did not generate sufficient cash to commercially launch the Lilium Jet; (5) Qell Acquisition Corp. failed to exercise due diligence regarding the merger; and (6) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times. When the real details entered the market, the lawsuit claims investors suffered damages.

For more information on the Lilium class action, please visit: https://bespc.com/cases/LILM

Li-Cycle Holdings Corp. (NYSE: LICY)

Course period: February 16, 2021 – March 23, 2022

Lead Applicant Deadline: June 20, 2022

On March 24, 2022, Blue Orca Capital released a report (the “Report”) describing the company as “a near-fatal combination of stock promotion, laughable governance, a bankrupt company with a cash haemorrhage, and… ‘very questionable Enron-type accounting’. According to the report, “Li-Cycle recognizes revenue using an Enron mark-to-model accounting gimmick Li-Cycle recognizes revenue months in advance of actual sales of its recycled black mass, based on its own tentative estimate of the future value of the product. This accounting treatment is clearly vulnerable to abuse, giving Li-Cycle discretion over its reported earnings. We suspect that as part of this, Li-Cycle is marking up the value of its claims on unsold products and passed the earnings through its revenue double.”

According to the lawsuit, the defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) Li-Cycle’s largest customer, Traxys North America LLC, did not is not actually a customer, but merely a broker providing financial capital to the Company while Traxys attempts to sell Li-Cycle’s product to end customers; (2) the Company has engaged in transactions with highly questionable related parties; (3) the Company’s mark-to-model accounting is vulnerable to abuse and gives a false impression of growth; (4) a significant portion of the Company’s reported revenue was derived simply from gross up receivables on products that had not been sold; (5) the gross margins of the Company have probably been negative since its inception; (6) the Company will need an additional $1 billion in funding to support its expected growth (which is more than the Company raised through the merger); and (7) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times. When the real details entered the market, the lawsuit claims investors suffered damages.

On this news, Li-Cycle’s stock price fell $0.47 per share, or 5.60%, to close at $7.93 per share on March 24, 2022.

For more information on the Li-Cycle class action, go to: https://bespc.com/cases/LICY

About Bragar Eagel & Squire, PC:

Bragar Eagel & Squire, PC 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, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com . Lawyer advertisement. Prior results do not guarantee similar results.

Contact information:

Bragar Eagel & Squire, CP
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com

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