Dimond Kaplan & Rothstein, P.A. is investigating the class actions relating to the following secondary stock offerings (also known as follow-on stock offerings) and initial public offerings (IPOs):
PURPLE INNOVATION (PRPL)
Mattress manufacturer Purple Innovation sold stock in a secondary offering in May 2021. As part of that offering, it is believed that Purple Innovations failed to disclose existing supply and manufacturing problems. The stock price dropped significantly when inventory problems were disclosed in November 2021. Investors who purchased Purple Innovation stock in the May 2021 secondary offering through Bank of America Securities, KeyBanc Capital Markets, or BMO Capital Markets Corp. may have a claim to recover damages.
OAK STREET HEALTH (OSH)
Medicare service provider Oak Street Health (OSH) conducted a secondary offering in February 2021. Upon information and belief, Oak Street Health failed to disclose False Claims Act violations in which it may have been involved. When the United States Department of Justice announced in November 2021 that it was investigating Oak Street Health, the stock price suffered a large drop. Investors who bought the stock in the secondary offering through JP Morgan Securities, Goldman Sachs, William Blair & Co LLC, Piper Sandler & Co, or Truist Securities Inc. may have a valid claim to recover damages.
Oak Street Health conducted another secondary offering in May 2021. Once again, it is believed that the company failed to disclose that it may have committed False claims Act violations. Those investors who purchased the stock in the May 2021 secondary offering also may have a valid claim to recover damages.
UP FINTECH HOLDING LTD (TIGR)
Chinese online securities brokerage firm Up Fintech Holding a/k/a Tiger Brokers conducted a secondary offering in June 2021. In mid-October 2021 Chinese officials questioned whether the company was complying with data privacy law. Also in October, 2021 Chinese banking officials accused the firm of illegally operating a brokerage firm without the required licenses. Investors who purchased shares of Up Fintech Holding in the secondary offering through Citigroup Global Markets Inc, Morgan Stanley, or Tiger Brokers NZ Ltd. may have a claim to recover damages.
FUTU HOLDINGS LTD. (FUTU)
Chinese online brokerage firm Futu Holdings Ltd. conducted a secondary offering in April 2021. In October 2021 Chinese banking officials accused Futu Holdings of illegally operating a brokerage firm because the company did not have the required licenses. Chinese officials also questioned the company’s compliance with data privacy laws. Investors who purchased Futu Holdings shares in the secondary offering through Bank of America Securities or Haitong International Securities Co Ltd. may have a claim to recover damages.
LIFESTANCE (LFST)
Behavioral and mental health company Lifestance conducted an initial public offering in June 2021. It is believed that the company failed to disclose problems that it had with its operations, including clinician turnover. The stock price dropped significantly when the company’s financial results reflected poor performance. Investors who purchased the stock at the IPO or later through Morgan Stanley & Co LLC, Goldman Sachs, JP Morgan Securities LLC, Jefferies & Co, TPG Capital, UBS Investment Bank/US, William Blair & Co LLC, Capital One Securities Inc, AmeriVet Securities Inc, Drexel Hamilton LLC, R Seelaus & Co LLC, or Siebert Williams Shank & Co LLC may have a claim for damages.
BRIGHT HEALTH (BHG)
Healthcare company Bright Health conducted an initial public offering in June 2021. It is believed that the company failed to disclose increasing costs associated with COVID. The price of the stock dropped significantly after weak financial performance was revealed after the stock offering Investors who purchased shares on or after the IPO through JP Morgan Securities LLC, Barclays Capital, Bank of America Securities, Citigroup Global Markets Inc, Goldman Sachs, Morgan Stanley & Co LLC, Piper Sandler & Co, Nomura International, or RBC Capital Markets may have a claim for damages.
Speak to a IPO or Secondary Offering Attorney at DKR Today
If you or anyone you know purchased any of the foregoing stocks on the IPO or secondary offering, please contact us at info@dkrpa.com or call DKR attorney Jeffrey Kaplan at 888-578-6255.
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