NEW YORK, July 29, 2021 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that securities class action lawsuits have been filed on behalf of stockholders of 360 DigiTech, Inc., CarLotz, Inc., and DiDi Global Inc. Investors have until the deadlines below to apply to the Court to be appointed as lead plaintiff in the lawsuits. Additional information about each case can be found at the links provided below.
360 DigiTech, Inc. (“360 DigiTech” or the “Company”) (NASDAQ: QFIN)
Class Period: April 30, 2020 to July 7, 2021
Lead Plaintiff Deadline: September 13, 2021
On July 8, 2021, reports circulated on social media to the effect that the Company’s core product, the 360 IOU app, had been removed from major app stores. The reports came on the heels of the removal of other companies’ apps as Chinese regulators investigated their customer data protection practices. On this news, 360 DigiTech’s stock price declined by $7.12 per share, or approximately 21.48%, from $33.14 per share to close at $26.02 per share on July 8, 2021.
Then, on July 9, 2021, Seeking Alpha reported that 360 DigiTech confirmed the removal of its 360 IOU app from the Android app store and quoted a Company spokesperson, who disclosed that the Company had “submitted a new rectification plan and stepped up the whole process.”
The lawsuits allege 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) the Company had been collecting personal information in violation of relevant PRC laws and regulations; (ii) accordingly, 360 DigiTech was exposed to an increased risk of regulatory scrutiny and/or enforcement action; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
For additional information on the 360 DigiTech lawsuit please visit this website.
CarLotz, Inc. (“CarLotz” or the “Company”) (NASDAQ: LOTZ)
Class Period: December 30, 2020 to May 25, 2021
Lead Plaintiff Deadline: September 7, 2021
On March 15, 2021, CarLotz announced its fourth quarter and full year 2020 financial results. During a related conference call, the Company stated that gross profit and gross profit per unit (“GPU”) “were softer than . . . expected” due to “the surge in inventory during the quarter and the resulting lower retail unit profitability.” CarLotz also reported that the additional inventory “created a logjam that resulted in slower processing and higher days to sell.” On this news, the Company’s stock price declined by $0.79 per share, or approximately 8.5%, from $9.24 per share to close at $8.45 per share on March 16, 2021.
Then, on May 10, 2021, after the market closed, CarLotz announced its first quarter 2021 financial results revealing that the GPU fell below expectations. In particular, the Company had expected retail GPU between $1,300 and $1,500 but reported $1,182. On this news, the Company’s stock price declined by $0.94 per share, or approximately 14.4%, from $6.51 per share to close at $5.57 per share on May 11, 2021.
Then, on May 26, 2021, before the market opened, CarLotz announced an update to its profit-sharing sourcing partner arrangement. Specifically, CarLotz stated that its “profit-sharing corporate vehicle sourcing partner informed the Company that, in light of current wholesale market conditions, it has paused consignments to the Company.” Moreover, this partner “accounted for more than 60% of the cars sold and sourced” during first quarter 2021 and “less than 50% of the cars sold and approximately 25% of cars sourced” during second quarter 2021 to date. On this news, the Company’s stock price declined by $0.70 per share, or approximately 13.4%, from $5.21 per share to close at $4.51 per share on May 26, 2021.
The lawsuits allege that throughout the Class Period, Defendants made materially false and/or misleading statements, and also failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made material misrepresentations concerning the following: (1) that, due to a surge in inventory during the second half of fiscal 2020, CarLotz was experiencing a “logjam” resulting in slower processing and higher days to sell; (2) that, as a result, the Company’s GPU would be negatively impacted; (3) that, to minimize returns to the corporate vehicle sourcing partner responsible for more than 60% of CarLotz’s inventory, the Company was offering aggressive pricing; (4) that, as a result, CarLotz’s GPU forecast was likely inflated; (5) that this Company’s corporate vehicle sourcing partner would likely pause consignments to the Company due to market conditions, including increasing wholesale prices; and (6) that, 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 additional information on the CarLotz lawsuits please visit this website.
Athira Pharma, Inc. (“Athira” or the “Company”) (NASDAQ: ATHA)
Class Period: September 18, 2020 to June 17, 2021
Lead Plaintiff Deadline: August 24, 2021
On June 17, 2021, Athira issued a press release announcing that the Company’s Chief Operating Officer had “assumed day-to-day leadership responsibilities for the Company, effective immediately.” The Company further disclosed that the Board of Directors placed the President and Chief Executive Officer Leen Kawas (“Kawas”), “on temporary leave pending a review of actions stemming from doctoral research [the CEO] conducted while at Washington State University.” The Company also disclosed that the “Board has formed an independent special committee to undertake this review.” On this news, Athira’s share price declined by $7.09 per share, or approximately 38.9%, from $18.24 per share to close at $11.15 per share on June 18, 2021.
The lawsuits allege that Defendants made materially false and misleading statements and omitted material adverse facts regarding the Company’s business. Specifically, Defendants failed to disclose to investors: (1) that the research conducted by Kawas, which formed the foundation for Athira’s product candidates and intellectual property, was tainted by Kawas’ scientific misconduct, including the manipulation of key data; and (2) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and omitted material facts necessary in order to make the statements made not misleading.
For additional information on the Athira lawsuits please visit this website.
About Kirby McInerney LLP:
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq., (212) 371-6600
investigations@kmllp.com
www.kmllp.com