NEW YORK, Feb. 16 10, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, is investigating potential claims against Embark Technology, Inc. (NASDAQ: EMBK), Affirm Holdings, Inc. (NASDAQ: AFRM), Gatos Silver, Inc. (NYSE: GATO) and Anavex Life Sciences Corp. (NASDAQ:AVXL). Our investigations focus on whether these companies have violated federal securities laws and/or engaged in other illegal business practices. Additional information on each case can be found at the link provided.
Embark Technology, Inc. (NASDAQ: EMBK)
On January 6, 2022, The Bear Cave released a short report entitled “Problems at Embark Technology (EMBK”) (the “Bear Cave Report”). The Bear Cave report alleged, among other things, “that Embark appears to lack real economic substance” and that its “current valuation appears to be based on puff rather than actual substance”, noting that “[t]The company holds no patents, only has a dozen test trucks, and may be more barking than biting.
On this news, Embark’s stock price fell $1.37 per share, or 16.75%, to close at $6.81 per share on January 6, 2022.
For more information on the Embark survey, visit: https://bespc.com/cases/EMBK
Affirm Holdings, Inc. (NASDAQ: AFRM)
On December 16, 2021, the Consumer Financial Protection Bureau (the “CFPB”) announced that it had launched an investigation into the payment service offered by Affirm known as “buy-now, pay-later” (“BPL”). The CFPB issued an order to Affirm, along with four other companies offering BNPL, seeking information about Affirm’s facilitation of excessive consumer debt, regulatory arbitrage and data collection. The CFPB has expressed concern about “debt accumulation, regulatory arbitrage and data collection” and is seeking data on product risks and benefits. In a statement to BNPL services, CFPB director Rohit Chopra said: “[t]The consumer receives the product immediately, but he also incurs the debt immediately.
On this news, Affirm’s stock price fell $11.74 per share, or approximately 10.6%, from $110.98 per share to close at $99.24 per share on December 16, 2021.
For more information on the Affirm Holdings survey, visit: https://bespc.com/cases/AFRM
Gatos Silver, Inc. (NYSE: GATO)
Gatos Silver is a silver-focused exploration, development and production company that has discovered a new silver and zinc-rich mineral district in the southern state of Chihuahua, Mexico.
On January 25, 2022, after market hours, Gatos Silver revealed that “there were errors in the technical report titled ‘Project Los Gatos, Chihuahua, Mexico’ with an effective date of July 1, 2020… as well as indications that there is an overestimation in the existing resource model. On a preliminary basis, the Company estimates a potential reduction in the metal content of its Cerro Los Gatos mineral reserve ranging from 30% to 50% of the metal content remaining after depletion.
On this news, Gatos Silver stock price fell $7.02 per share, or approximately 68.9%, from $10.19 per share to close at $3.17 per share on January 26, 2022 .
For more information on the Gatos investigation, visit: https://bespc.com/cases/GATO
Anavex Life Sciences Corp. (NASDAQ:AVXL)
On February 1, 2022, before the market opened, Anavex announced that a Phase 3 trial of ANAVEX2-73 (blarcamesine) for Rett syndrome met primary and secondary endpoints. Following the announcement, several people on social media commented that the primary and secondary settings had recently been changed. STAT News writer Adam Feuerstein tweeted, “Anavex changed the primary and secondary endpoints of this Rett study on January 18, allowing it to claim success when the drug likely failed.”
On this news, Anavex stock fell $2.04, or 15.6%, to close at $11.04 per share on Feb. 1, 2022, hurting investors.
For more information on the Anavex survey, visit: https://bespc.com/cases/AVXL
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.
Bragar Eagel & Squire, CP
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.