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CoreWeave, Inc. (CRWV) Slapped With Securities Class Action Amid Questions Over Denton Data Center Completion Transparency, $14 Billion Market Cap Loss - Hagens Berman
Globenewswire· 2026-01-14 21:44
Core Viewpoint - A securities class action lawsuit has been filed against CoreWeave, Inc. and certain executives, representing investors who acquired CoreWeave securities between March 28, 2025, and December 15, 2025 [1] Group 1: Lawsuit Details - The lawsuit follows revelations about delays from a third-party data center developer, impacting CoreWeave's Denton, Texas data center cluster intended for OpenAI, which has led to a significant decline in share price [2] - Hagens Berman, a national shareholder rights firm, is investigating claims that CoreWeave misled investors, urging those who suffered losses to come forward [3] - The complaint focuses on CoreWeave's statements regarding its ability to meet high demand for services and recognize revenue from long-term contracts with customers [4] Group 2: Allegations of Misleading Information - The lawsuit alleges that CoreWeave made misleading statements and failed to disclose its overstated ability to meet customer demand [5] - CoreWeave is accused of underestimating the risks associated with its reliance on a single third-party data center supplier, affecting its ability to meet customer demand and recognize revenue [5] Group 3: Market Reaction and Financial Impact - Investors began questioning CoreWeave's transparency after the company reported Q3 2025 financial results on November 10, 2025, which included a surprising reduction in full-year revenue guidance due to delays from a third-party developer [6] - Following a report from The Wall Street Journal on December 15, 2025, regarding ongoing delays from the data center supplier, CoreWeave's share price dropped by $36.11, a decline of 34%, resulting in a loss of approximately $14 billion in market capitalization within a month [6]
Leaked memo shows popular crypto firm may wind down
Yahoo Finance· 2025-12-17 17:10
Scrutiny around crypto venture firm Shima Capital intensified after US regulators charged its founder with investor fraud. Days later, an internal email surfaced indicating the firm could be moving toward an orderly wind-down. Screenshots of a private email, shared publicly by a crypto journalist, appear to show a leadership shake-up and major operational changes just days after US authorities filed fraud charges. Regulators make the move first The US Securities and Exchange Commission charged Shima C ...
KBR 1-WEEK DEADLINE ALERT: KBR, Inc. (KBR) Cuts 2025 Revenue Due to TRANSCOM Termination, Securities Class Action Looms–Hagens Berman
Globenewswire· 2025-11-11 15:11
Core Viewpoint - A class-action lawsuit has been filed against KBR, Inc. alleging misleading statements to investors prior to the cancellation of a significant military contract, which adversely affected the company's business outlook [1][5]. Group 1: Lawsuit Details - The lawsuit aims to represent investors who acquired KBR securities between May 6, 2025, and June 19, 2025 [1][2]. - Hagens Berman, a national shareholders rights firm, is encouraging KBR investors who experienced substantial losses to come forward [2]. - The legal action claims that KBR executives provided an overly optimistic outlook on a crucial partnership just before its collapse [2]. Group 2: Contract Cancellation Impact - The litigation is linked to the Department of Defense's cancellation of its global household goods contract with HomeSafe Alliance LLC, a joint venture led by KBR, announced on June 20, 2025 [3]. - Following the contract termination, KBR shares dropped over 7% due to the loss of a contract valued at up to $20 billion over a potential nine-year term [3]. Group 3: Misrepresentation Allegations - On May 6, 2025, during its Q1 earnings call, KBR assured investors that the HomeSafe partnership was "strong" and projected a mid-point revenue contribution of about $400 million for 2025 [4]. - Just weeks later, on June 19, 2025, HomeSafe revealed that TRANSCOM had terminated the contract due to operational issues, which KBR allegedly knew about but did not disclose to investors [5]. - The lawsuit argues that KBR's misrepresentation led to significant financial losses for shareholders [5]. Group 4: Financial Guidance Revision - Following the contract termination, KBR revised its low-end 2025 revenue guidance downward by approximately $900 million (-9%) on July 31, 2025, primarily due to the removal of the HomeSafe JV revenue contribution [6]. - KBR management acknowledged operational challenges during the earnings call after the guidance revision [6].
Stride, Inc. (LRN) Plunges 49% as Platform Upgrade Fails, Triggering Hagens Berman Probe -- Hagens Berman
Globenewswire· 2025-11-04 23:10
Core Viewpoint - Hagens Berman is investigating Stride, Inc. for potential violations of U.S. securities laws due to significant operational issues and fraud allegations that have led to a sharp decline in the company's stock price [1][4]. Financial Performance and Guidance - Stride reported Q1 earnings overshadowed by operational issues and cautious guidance, with management forecasting only 5% sales growth for 2026, a significant drop from the 19% annualized growth over the past five years [2][5]. Operational Issues - The company experienced major disruptions while implementing an upgraded platform, resulting in an estimated loss of 10,000 to 15,000 enrollments, which is substantial given the total enrollment of 247,700 [5]. - CEO James Rhyu acknowledged the implementation challenges, stating that the poor customer experience led to higher withdrawal and lower conversion rates than expected [5]. Fraud Allegations - Prior allegations against Stride include claims of artificially inflating student enrollment figures by including "ghost students," increasing student-to-teacher ratios to inflate profit margins, and employing insufficiently licensed teachers [6]. - Allegations also suggest unlawful business practices aimed at lowering overhead costs to inflate stock values [6]. Market Reaction - Following the fraud allegations reported on September 14, 2025, Stride's stock price fell by $18.60, or 11%, in heavy trading [3]. Investigation Details - Hagens Berman's investigation is focused on whether Stride misled investors regarding operational challenges and business practices, with particular scrutiny on enrollment figures and teacher quality [4].
AVTR DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Avantor
Businesswire· 2025-10-30 22:03
Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Avantor, Inc. due to allegations of misleading statements regarding the company's competitive position and performance, which have led to significant investor losses [2][4]. Group 1: Allegations and Misleading Statements - The complaint alleges that Avantor and its executives violated federal securities laws by making false and misleading statements about the company's competitive positioning and failing to disclose the negative impacts of increased competition [4]. - During an earnings call on July 26, 2024, the then CEO Michael Stubblefield assured investors of Avantor's strong competitive position, despite evidence suggesting otherwise [5]. - The company downplayed the effects of increased competition, claiming competitive advantages that were later proven to be overstated [5]. Group 2: Financial Performance and Stock Impact - On April 25, 2025, Avantor reported disappointing Q1 2025 results, cutting its guidance and attributing weak performance to increased competitive intensity, resulting in a stock price drop of over 16.5% [6]. - The company further reported a year-over-year decrease in net sales on August 1, 2025, and projected organic revenue growth of -2% to 0%, leading to another stock decline of more than 15% [7][8]. - In Q3 2025, Avantor reported a net loss of $712 million, primarily due to a non-cash goodwill impairment charge of $785 million, which was attributed to competitive pressures, causing the stock to drop over 23% [9][10].
KLC FINAL DEADLINE ALERT: Did KinderCare (KLC) Mislead IPO Investors? Lawsuit Alleges Company Concealed History of Child Safety Failures – Hagens Berman
Globenewswire· 2025-10-13 19:43
Core Viewpoint - A securities class action lawsuit has been filed against KinderCare Learning Companies, Inc. and its executives, alleging misleading statements during its October 2024 IPO, which misrepresented the company's operations and safety record [1][2]. Company Operations and Allegations - The lawsuit claims that KinderCare's IPO documents falsely portrayed the company as providing "the highest quality care possible" while concealing a history of serious safety and care failures [2][6]. - More than 30% of KinderCare's revenues are derived from federal subsidies, making the alleged omissions regarding safety and care failures particularly significant [3]. Financial Performance - Since the IPO, KinderCare's stock has significantly declined from an offering price of $24 per share to lows near $9 per share, attributed to the market's realization of the company's misleading statements [4]. Legal Investigation - Hagens Berman is investigating the claims and focusing on the extent to which KinderCare's alleged history of safety failures was concealed, leading to an artificially inflated IPO price and subsequent investor losses [5][6]. - The investigation aims to determine if the failure to disclose key risks constitutes a violation of U.S. securities laws [6].
KLC 5-DAY DEADLINE ALERT: Did KinderCare (KLC) Mislead IPO Investors? Lawsuit Alleges Company Concealed History of Child Safety Failures– Hagens Berman
Globenewswire· 2025-10-09 16:38
Core Viewpoint - A securities class action lawsuit has been filed against KinderCare Learning Companies, Inc. and its executives, alleging misleading statements during its October 2024 IPO, which misrepresented the company's operations and safety record [1][2]. Group 1: Lawsuit Details - The lawsuit, Gollapalli v. KinderCare Learning Companies, Inc., seeks to represent investors who purchased KLC common stock during or traceable to the IPO [1]. - The complaint claims that KinderCare's IPO documents falsely portrayed the company as providing "the highest quality care possible," while concealing a history of serious safety and care failures [2]. - The lawsuit highlights that over 30% of KinderCare's revenues are derived from federal subsidies, making the alleged omissions particularly significant [3]. Group 2: Stock Performance - Since the IPO, KinderCare's stock has significantly declined from an offering price of $24 per share to lows near $9 per share, attributed to the market's realization of the company's misleading statements [4]. Group 3: Investigation and Implications - Hagens Berman is investigating the claims and focusing on the extent to which KinderCare's alleged history of safety failures was concealed, leading to an artificially inflated IPO price [5][6]. - The investigation aims to determine if the failure to disclose key risks constitutes a violation of U.S. securities laws [6].
KLC 1-WEEK DEADLINE ALERT: Did KinderCare (KLC) Mislead IPO Investors? Lawsuit Alleges Company Concealed History of Child Safety Failures– Hagens Berman
Globenewswire· 2025-10-07 20:19
Core Viewpoint - A securities class action lawsuit has been filed against KinderCare Learning Companies, Inc. and its executives, alleging misleading statements during its October 2024 IPO, which misrepresented the company's operations and concealed a history of safety failures [1][2]. Group 1: Lawsuit Details - The lawsuit, Gollapalli v. KinderCare Learning Companies, Inc., seeks to represent investors who purchased KLC common stock during or traceable to the IPO [1]. - The complaint claims that KinderCare's IPO documents falsely portrayed the company as providing "the highest quality care possible" while hiding serious safety and care failures [2]. - The lawsuit emphasizes that over 30% of KinderCare's revenues are derived from federal subsidies, making the alleged omissions particularly critical [3]. Group 2: Stock Performance - Since the IPO, KinderCare's stock has significantly declined from an offering price of $24 per share to lows near $9 per share, attributed to the market's realization of the company's misleading statements [4]. Group 3: Investigation and Implications - Hagens Berman is investigating the claims and focusing on the extent to which KinderCare's history of safety failures was concealed, leading to an inflated IPO price and subsequent investor losses [5][6]. - The investigation aims to determine if the failure to disclose key risks constitutes a violation of U.S. securities laws [6].
KLC 11-DAY DEADLINE ALERT: Did KinderCare (KLC) Mislead IPO Investors? Lawsuit Alleges Company Concealed History of Child Safety Failures– Hagens Berman
Globenewswire· 2025-10-03 18:46
Core Viewpoint - A securities class action lawsuit has been filed against KinderCare Learning Companies, Inc. and its executives, alleging misleading statements during its October 2024 IPO, which misrepresented the company's operations and safety record [1][2]. Group 1: Lawsuit Details - The lawsuit, Gollapalli v. KinderCare Learning Companies, Inc., seeks to represent investors who purchased KLC common stock during or traceable to the IPO [1]. - The complaint claims that KinderCare's IPO documents falsely portrayed the company as providing "the highest quality care possible," while concealing a history of serious safety and care failures [2]. - The lawsuit emphasizes that over 30% of KinderCare's revenues are derived from federal subsidies, making the alleged omissions particularly significant [3]. Group 2: Stock Performance - Since the IPO, KinderCare's stock has significantly declined from an offering price of $24 per share to lows near $9 per share, attributed to the market's realization of the company's misleading statements [4]. Group 3: Investigation and Implications - Hagens Berman is investigating the claims and encourages affected investors to consider their legal options, focusing on the alleged concealment of safety and care failures that inflated the IPO price [5][6]. - The investigation aims to determine if the failure to disclose key risks constitutes a violation of U.S. securities laws [6].
SOC 3-DAY DEADLINE ALERT: Lawsuit Accuses Sable Offshore (SOC) of Misleading Investors on Oil Production– Hagens Berman
Globenewswire· 2025-09-23 20:27
Core Viewpoint - A securities class-action lawsuit has been filed against Sable Offshore Corp. for allegedly misleading investors regarding the restart of its oil production, which led to significant investor losses [1][2]. Group 1: Allegations and Legal Proceedings - The lawsuit, Johnson v. Sable Offshore Corp., involves investors who purchased shares between May 19, 2025, and June 3, 2025, including those who participated in the secondary public offering on May 21, 2025 [2]. - Sable Offshore issued a press release on May 19 claiming it had restarted oil production, which was later contradicted by California's Lieutenant Governor, stating the activities were only "well-testing procedures" [2]. - The alleged deception was revealed on May 28, 2025, when the Lieutenant Governor's letter became public, causing Sable's stock price to drop by over 15% [3]. - On June 4, 2025, a Santa Barbara County Superior Court judge issued a temporary restraining order against Sable, prohibiting oil transportation through the Las Flores Pipeline System, further impacting the stock price [3]. Group 2: Legal Representation and Investigation - Hagens Berman, a national shareholder rights firm, is investigating the claims against Sable Offshore and is seeking information from investors who suffered substantial losses [5]. - The firm is exploring whether the company's claims about oil production and subsequent judicial actions were part of a pattern of misleading behavior that caused investor losses [5]. Group 3: Company Background - Hagens Berman has a history of representing investors and has secured over $2.9 billion in cases related to corporate negligence and wrongdoing [6].