Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Aaron’s, Canaan, Tilray, and World Wrestling Entertainment and Encourages Investors to Contact the Firm
April 08, 2020 at 15:00 PM EDT
NEW YORK, April 08, 2020 (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 Aaron’s, Inc, (NYSE: AAN), Canaan, Inc. (NASDAQ: CAN), Tilray, Inc. (NASDAQ: TLRY). And World Wrestling Entertainment, Inc. (NYSE: WWE). 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.
Aaron’s, Inc. (NYSE: AAN)
Class Period: March 2, 2018 and February 19, 2020
Lead Plaintiff Deadline: April 28, 2020
On July 26, 2018, Aaron’s filed a Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”), reporting the Company’s financial and operating results for the fiscal quarter ended June 30, 2018. That Quarterly Report disclosed that, in July 2018, Aaron’s received civil investigative demands (“CIDs”) from the Federal Trade Commission (“FTC”) requesting the production of documents and answers to written questions to determine whether disclosures related to financial products offered by the Company through its AB and Progressive segments were in violation of the FTC Act.
On this news, Aaron’s stock price fell $5.38 per share, or 11.01%, to close at $43.47 per share on July 27, 2018.
On April 25, 2019, Aaron’s filed another Quarterly Report on Form 10-Q with the SEC, reporting the Company’s financial and operating results for the fiscal quarter ended March 31, 2019. That Quarterly Report disclosed that, in April 2019, Aaron’s AB segment “received an unrelated CID from the FTC focused on certain transactions involving the purchase and sale of customer lease agreements, and whether such transactions violated the FTC Act.”
Then, on February 20, 2020, Aaron’s issued a press release announcing the Company’s financial results for the quarter and year ended December 31, 2019. Among other results, Aaron’s reported that the Company’s Progressive segment had reached an agreement in principle with FTC staff regarding the CID from the FTC that Progressive received in July 2018. Aaron’s advised investors that “[u]nder the proposed agreement, which requires final approval by FTC Commissioners and the U.S. District Court for the Northern District of Georgia, Progressive will make a payment of $175 million and enhance certain compliance-related activities, including monitoring, disclosure and reporting requirements.”
On this news, Aaron’s stock price fell $10.70 per share, or 19.06%, to close at $45.45 per share on February 20, 2020.
The Complaint, filed on February 28, 2020, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (i) that Aaron’s had inadequate disclosure controls, procedures, and compliance measures; (ii) that, consequently, the operations of Aaron’s Progressive and AB segments were in violation of the FTC Act and/or relevant FTC regulations; (iii) that, consequently, Aaron’s earnings from those segments were partially derived from unlawful business practices and were thus unsustainable; (iv) the full extent of Aaron’s liability regarding the FTC’s investigation into its Progressive and AB segments, Aaron’s noncompliance with the FTC Act, and the likely negative consequences of all the foregoing on the Company’s financial results; and (v) that, as a result, the Company’s public statements were materially false and misleading at all relevant times.
For more information on the Aaron’s class action go to: https://bespc.com/AAN-2
Canaan, Inc. (NADSAQ: CAN)
Class Period: Securities purchased pursuant or traceable to the Company’s initial public offering, which commenced on or about November 20, 2019 (the “IPO” or “Offering”).
Lead Plaintiff Deadline: May 4, 2020
Canaan, a company specializing in Blockchain servers and ASIC microprocessor solutions for use in bitcoin mining, completed its initial public offering in November of 2019. Then, on February 20, 2020, an investment analyst operating under the pseudonym Marcus Aurelius published a short report entitled “Canaan Fodder” claiming, among other things, that Canaan was engaged in several undisclosed related-party transactions that lacked economic substance.
For example, the report alleges that just one month before Canaan’s IPO, a tiny Hong Kong company named Grandshores announced that it had agreed to purchase up to $150 Million worth of the company’s equipment in 2020, even though Grandshores’ entire market cap is only $50 million and it reports having only $16 million in cash on hand. Purportedly, the Chairman of Grandshores owns 9.7% of Canaan’s outstanding shares through entities he controls -- yet this relationship is not mentioned anywhere in Canaan’s SEC filings.
The complaint, filed on March 4, 2020, alleges that the Registration Statement for the IPO contained false and/or misleading statements and/or failed to disclose that: (1) the purported “strategic cooperation” was actually a transaction with a related party; (2) the company’s financial health was worse than what was actually reported; (3) the company had recently removed numerous distributors from its website just prior to the IPO, many of which were small or suspicious businesses; and (4) several of the company’s largest Chinese clients in prior years were clients who were not in the Bitcoin mining industry and, thus, would likely not be repeat customers. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Canaan class action go to: https://bespc.com/can
Tilray, Inc. (NASDAQ: TLRY)
Class Period: January 15, 2019 to March 2, 2020
Lead Plaintiff Deadline: May 5, 2020
On March 2, 2020, Tilray issued a press release announcing the Company’s financial results for the fourth quarter and full year 2019. Among other results, Tilray reported a net loss for the year of $321.2 million, or $3.20 per share, compared to $67.7 million, or $0.82 per share, for 2018. In addition, Tilray disclosed that “the Company recorded non-cash charges of $112.1 million related to impairment of the Authentic Brands Group LLC (‘ABG’) agreement as well as $68.6 million in inventory reserves.”
On this news, Tilray’s stock price fell $2.33 per share, or 15.18%, to close at $13.02 per share on March 3, 2020.
The complaint, filed on March 6, 2020, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the purported advantages of the ABG Agreement were significantly overstated; (ii) the underperformance of the ABG Agreement would foreseeably have a significant impact on the Company’s financial results; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times
For more information on the Tilray class action go to: https://bespc.com/TLRY
World Wresting Entertainment, Inc. (NYSE: WWE)
Class Period: Stockholders who purchased Class A common stock between February 7, 2019 and February 5, 2020
Lead Plaintiff Deadline: May 5, 2020
WWE is an integrated media and entertainment company primarily known for its scripted professional wrestling shows. In recent years, WWE has entered into important strategic relationships with the Kingdom of Saudi Arabia, including a multi-year television distribution rights agreement with the Orbit Showcase Network (“OSN”), a Saudi-controlled direct broadcast satellite provider, and a 10-year partnership with the Saudi General Sports Authority to host live events in Saudi Arabia.
The problems with WWE’s relationship with the Saudis began to be revealed in a series of partial disclosures.
On April 25, 2019, the Company disclosed disappointing financial results and fiscal guidance, which several analysts connected to potential hiccups in the Company’s dealings with the Saudis.
On October 31, 2019, in connection with the release of the Company’s third quarter 2019 financial results, WWE revealed significant underperformance across key metrics and revealed that the media rights deal had been indefinitely delayed. Around this same time, it was reported that the Saudi government had withheld tens of millions of dollars in payments owed to WWE. The dispute continued to escalate, culminating in a decision by WWE to cut a broadcasting feed of a live event held in the country. In retaliation, the Saudi government temporarily refused to allow several WWE wrestlers to leave the country in what was later described as akin to a “hostage situation” under the pretense of mechanical airplane issues.
Then, on January 30, 2020, WWE revealed that two of its longest serving senior executives – defendants George A. Barrios and Michelle D. Wilson – had been ousted. Shortly thereafter, on February 6, 2020, WWE again disclosed disappointing financial performance due to its failure to secure a favorable broadcasting deal with the Saudis and revealed that the Saudi media rights deal would not be included in the Company’s financial forecasting.
As a result of these disclosures, the price of WWE Class A common stock plummeted from a Class Period high of more than $100 per share to as low as $40.24 per share on February 6, 2020, representing a 60% share price decline.
The complaint, filed on March 6, 2020, alleges that during the Class Period defendants made false and misleading statements and/or failed to disclose adverse information regarding WWE’s business and operations. Specifically, defendants failed to disclose that WWE was experiencing rising tension with the Saudi government and a breakdown in negotiations over a renewed broadcasting distribution deal; that the Saudi government and its affiliates had failed to make millions of dollars in payments owed to WWE pursuant to existing contractual commitments between the parties; that OSN had terminated the broadcast of WWE programming in the first quarter of 2019, despite a contractual obligation to continue such broadcasts, and that this cancellation was symptomatic of a deterioration in the business relationship between the parties; that OSN had rebuffed efforts to renew a distribution rights agreement on terms acceptable to WWE; and that WWE did not have the ability to expand its operations in the Middle East or within Saudi Arabia as had been represented to investors.
For more information on the WWE class action go to: https://bespc.com/WWE
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