NEW YORK, Dec. 02, 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 US Bancorp (NYSE: USB), FIGS, Inc. (NYSE: FIGS), Freshworks Inc. (NASDAQ: FRSH), and Enviva, Inc. (NYSE: EVA). 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.
US Bancorp (NYSE: USB)
Class Period: August 1, 2019 - July 28, 2022
Lead Plaintiff Deadline: December 27, 2022
U.S. Bancorp (“Company”) is a Delaware company headquartered in Minneapolis, Minnesota. U.S. Bancorp provides a full range of financial services, including lending and depository services, cash management, capital markets, and trust and investment management services. It also engages in credit card services, merchant and ATM processing, mortgage banking, insurance, brokerage, and leasing. U.S. Bancorp’s banking subsidiary, U.S. Bank National Association (“U.S. Bank”), is engaged in the general banking business, principally in domestic markets. U.S. Bancorp is the publicly traded parent company of U.S. Bank.
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: (a) U.S. Bank created sales pressure on its employees that led them to open credit cards, lines of credit, and deposit accounts without consumers’ knowledge and consent; (b) since at least 2015, U.S. Bank and by extension, U.S. Bancorp, was aware of such unauthorized conduct and that it was violating relevant regulations and laws aimed at protecting its consumers; (c) U.S. Bancorp failed to properly monitor its employees from engaging in such unlawful conduct, detect and stop the misconduct, and identify and remediate harmed consumers; (d) all the foregoing subjected the Company to a foreseeable risk of heightened regulatory scrutiny or investigation; (e) U.S. Bancorp’s revenues were in part the product of unlawful conduct and thus unsustainable; and (f) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On July 28, 2022, the truth about U.S. Bancorp’s practices was disclosed when the Consumer Financial Protection Bureau (“CFPB”) issued a Consent Order and fined U.S. Bank $37.5 million for illegally exploiting consumers’ personal data to open sham accounts for unsuspecting customers.
On this news, the price of U.S. Bancorp stock declined 4% to close at $46.12 on July 28, 2022.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.
For more information on the US Bancorp class action go to: https://bespc.com/cases/USB
FIGS, Inc. (NYSE: FIGS)
Class Period: May 27, 2021 - May 12, 2022
Lead Plaintiff Deadline: January 3, 2023
FIGS, Inc. operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States. Best known for its medical scrubs, it also designs and sells other healthcare apparel, such as lab coats, under scrubs, outerwear, activewear, loungewear, compression socks footwear, and masks.
On June 1, 2021, FIGS announced the closing of its IPO. Defendants offered shares at $22 per share. Leading up to the IPO and during the Class Period, defendants: (i) inflated the Company's true ability to successfully secure repeat customers; (ii) failed to disclose the Company's increasing dependence on air freight; and (iii) inflated the expected net revenues, gross margin, and adjusted EBITDA margin for 2022.
The Registration Statement claimed that due to the Company's access to significant customer data, it was able to maintain an efficient and steady supply chain. The truth was, however, that the Company's access to data did not allow it to mitigate supply chain problems through predictable sales. Instead, FIGS had to increasingly rely on air freight that costs materially more than the overseas shipping it was previously reliant on. The Registration Statement blamed the COVID-19 pandemic for the use of air freight in the time leading up to the IPO. The truth, was, however, that FIGS was continually relying on air freight for its business. Even after the IPO, as the Company continued to rely on cost air freight, the defendants continued to claim that air freight was transitory. For example, defendants stated that the use of air freight was at its "peak" during the fourth quarter of 2021, and that "we're pretty confident that we're going to see less airfreight overall than we're seeing it in [the fourth quarter] as we get into ."
On May 12, 2022, the Company announced disappointing results and slashed its expected sales, gross margin, and adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") because of these "supply chain" issues. FIGS also admitted that not only did they continue to rely on air freight during the first quarter of 2022, but that "[f]or the rest of the year, we plan to significantly increase our use of airfreight to reduce our exposure to these unpredictable transit times." On this news, the Company's stock price fell $3.21 per share, approximately 25%, to just $9.64 per share.
For more information on the FIGS class action go to: https://bespc.com/cases/FIGS
Freshworks Inc. (NASDAQ: FRSH)
Class Period: September 21, 2021 – November 1, 2022
Lead Plaintiff Deadline: January 3, 2023
In September 2021, Freshworks completed its initial public offering (“IPO”), selling 28.5 million shares of common stock at $36 per share.
On February 10, 2022, Freshworks announced disappointing fourth quarter 2021 financial results, reporting flat calculated billings growth and revenue growth deceleration (of only 44% year-over-year).
On this news, the Company’s stock fell $4.05, or 18%, to close at $18.41 per share on February 11, 2022, thereby injuring investors.
Then, on May 3, 2022, after market hours, Freshworks reported its first quarter 2022 financial results, disclosing a third quarter of decelerating revenue growth and billings that missed consensus estimates and declined 13% quarter over quarter.
On this news, the Company’s stock fell $0.97, or 5.7%, over two consecutive trading days, to close at $15.99 per share on May 5, 2022, thereby injuring investors further.
For more information on the Freshworks class action go to: https://bespc.com/cases/FRSH
Enviva, Inc. (NYSE: EVA)
Class Period: February 21, 2019 - October 11, 2022
Lead Plaintiff Deadline: January 3, 2023
Enviva, formerly known as Enviva Partners, LP, develops, constructs, acquires, and owns and operates, fully contracted wood pellet production plants. The Company's products are used as a substitute for coal in power generation, and combined heat and power plants. Significantly, Enviva touts itself as a "growth-oriented" environmental, social, and governance ("ESG") company with a "platform to generate stable and growing cash flows."
The complaint alleges that, throughout the Class Period, Defendants 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) Enviva had misrepresented the environmental sustainability of its wood pellet production and procurement; (ii) Enviva had similarly overstated the true measure of cash flow generated by the Company's platform; (iii) accordingly, Enviva had misrepresented its business model and the Company's ability to achieve the level of growth that Defendants had represented to investors; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
On October 12, 2022, during pre-market hours, Blue Orca Capital ("Blue Orca") published a report on Enviva (the "Blue Orca Report"). Among other allegations, the Blue Orca Report stated that "new discovered data suggests . . . the company is flagrantly greenwashing its wood procurement" and characterized Enviva's claim to be a "pure play ESG Company with a healthy, self-funded dividend and cash flows to provide a platform for future growth" as "nonsense on all counts." Moreover, the Blue Orca Report alleged that "Enviva is a dangerously levered serial capital raiser whose deteriorating cash conversion and unprofitability will drain it of cash next year" and is "a product of deranged European climate subsidies which incentivize the destruction of American forests so that European power companies can check a bureaucratic box."
On this news, Enviva's stock price fell $7.74 per share, or 13.13%, to close at $51.23 per share on October 12, 2022.
For more information on the Enviva class action go to: https://bespc.com/cases/EVA
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.
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.