Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Kingold Jewelry, Pilgrim’s Pride, GEO Group, and Wirecard and Encourages Investors to Contact the Firm

8/19/2020, 10:00 PM (Source: GlobeNewswire)

NEW YORK, Aug. 19, 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 Kingold Jewelry, Inc. (NASDAQ: KGJI), Pilgrim’s Pride Corporation (NASDAQ: PPC), The Geo Group, Inc. (NYSE: GEO), and Wirecard AG (Other OTC: WCAGY, WRCDF). 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.

Kingold Jewelry, Inc. (NASDAQ: KGJI)

Class Period: March 15, 2018 to June 28, 2020

Lead Plaintiff Deadline: August 31, 2020

On June 29, 2020, Caixin Global published an article entitled “Cover Story: The Mystery of $2 Billion of Loans Backed by Fake Gold.” The article stated, among other things, that Kingold had used gold bars that were actually gilded copper as collateral in loans and was now facing lawsuits as a result, and that Kingold had been delisted from the Shanghai Gold Exchange.

On this news, shares of Kingold stock fell $0.27 per share, or over 24%, to close at $0.85 per share on June 29, 2020.

The complaint, filed on June 30, 2020, alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) Kingold used fake gold as collateral to fraudulently secure loans; (2) consequently, the Company would face creditor lawsuits and be delisted from the Shanghai Gold Exchange; and (3) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

For more information on the Kingold Securities class action go to: https://bespc.com/KGJI

Pilgrim’s Pride Corporation (NASDAQ: PPC)

Class Period: February 9, 2017 to June 3, 2020

Lead Plaintiff Deadline: September 4, 2020

Throughout the Class Period, the defendants touted Pilgrim’s Pride’s competitive strengths, advantages, and market positioning, which the defendants claimed had been achieved through legitimate business strategies such as a broad product portfolio and disciplined capital allocation. 

However, on June 3, 2020, the truth about the source of Pilgrim’s Pride’s purported competitive strengths and advantages was revealed when the United States Department of Justice announced criminal charges (the “Indictment”) charging four executives in the chicken industry with criminal antitrust violations, including defendant Jayson J. Penn, Pilgrim’s Pride’s President and Chief Executive Officer since March 2019, and Roger Austin, a former Pilgrim’s Pride Vice President. 

Following this news, the price of Pilgrim’s Pride common stock declined $2.58 per share, or approximately 12.4%, from a close of $20.87 per share on June 2, 2020, to close at $18.29 per share on June 3, 2020.

The complaint, filed on July 6, 2020, alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose that: (1) Pilgrim’s Pride and its executives had participated in an illegal antitrust conspiracy to fix prices and rig bids from at least as early as 2012 and continuing through at least early 2017; (2) Pilgrim’s Pride received competitive advantages, which persisted during the Class Period, from its anticompetitive conduct; and (3) as a result, the defendants’ statements about the Pilgrim’s Pride’s business, operations, and prospects lacked a reasonable basis.

For more information on the Pilgrim’s Pride class action go to: https://bespc.com/PPC

The GEO Group, Inc. (NYSE: GEO)

Class Period: February 27, 2020 to June 16, 2020

Lead Plaintiff Deadline: September 8, 2020

On June 17, 2020, The Intercept published an article entitled “GEO Group’s Blundering Response to the Pandemic Helped Spread Coronavirus in Halfway Houses.” The article reported details of a significant COVID-19 outbreak at the Grossman Center, a halfway house in Leavenworth, Kansas, operated by GEO Group—which “was for weeks the hardest hit federal halfway house in the country” in terms of confirmed cases of COVID-19. Citing interviews with residents of the Grossman Center, The Intercept characterized GEO Group’s response as “blundering” and reported “that the virus spread not in spite of the facility’s efforts to contain it, but because of it.” According to the article, the Grossman Center continued to keep its residents in overcrowded conditions without enforcing personal protective measures even as COVID-19 diagnoses at the facility increased.

On this news, GEO Group’s stock price fell $1.03 per share, or 7.8%, to close at $12.17 per share on June 17, 2020.

The complaint, filed on July 7, 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) GEO Group maintained woefully ineffective COVID-19 response procedures; (ii) those inadequate procedures subjected residents of the Company’s halfway houses to significant health risks; (iii) accordingly, the Company was vulnerable to significant financial and/or reputational harm; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.

For more information on the GEO Group class action go to: https://bespc.com/GEO

Wirecard AG (Other OTC: WCAGY, WRCDF)

Class Period: August 17, 2015 to June 24, 2020

Lead Plaintiff Deadline: September 8, 2020

On June 18, 2020, Wirecard announced that it would delay publication of its annual and consolidated financial statements for 2019 and revealed that about €1.9 billion ($2.1 billion) in cash had gone missing.  The Company also warned that loans up to €2 billion could be terminated.  Additionally, the Company stated that Ernst & Young, the Company’s auditor, was unable to confirm the location of the cash in certain trust accounts and there was evidence that “spurious balance confirmations” had been provided. 

Following the Company’s announcement, Wirecard’s American depositary receipts (“ADRs”) fell $38.30 per ADR, or 65.47%, to close at $20.20 per ADR on June 18, 2020. 

Then, on June 23, 2020, multiple news outlets reported that former Wirecard Chief Executive Officer Markus Braun was arrested in Germany on suspicion of having inflated the Company's balance sheet and sales.  

Wirecard’s ADR price has fallen over 75% following these revelations.

The complaint, filed on July 7, 2020, alleges that throughout the Class Period defendants, including the Company’s auditor, made false and/or misleading statements and/or failed to disclose that: (1) Wirecard overstated its cash balances during the Class Period, falsely claiming €1.9 billion of cash in a trust account that was missing; (2) Wirecard overstated its financial results, including revenue and EBITDA; (3) Wirecard did not have adequate risk management or countermeasures; (4) Wirecard’s auditor failed to audit the Company in accordance with applicable auditing principles; and (5) as a result, defendants’ statements about Wirecard’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

For more information on the Wirecard class action go to: https://bespc.com/wirecard

About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. 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. 

Contact Information:
Bragar Eagel & Squire, P.C.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com

 

Primary Logo

Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.