Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Harborside, LexinFintech, Colony Credit Real Estate, and Gol Linhas Aereas Inteligentes and Encourages Investors to Contact the Firm

Primary tabs

Provides Update to Management Cease Trade Order and Cease Trade Order regarding its delayed restatements and the continued suspension of trading of its Canadian shares.

Information
Retrieved on: 
Thursday, September 17, 2020 - 1:00am
Organisation: 
Bragar Eagel & Squire
Content
Key Points: 
  • Provides Update to Management Cease Trade Order and Cease Trade Order regarding its delayed restatements and the continued suspension of trading of its Canadian shares.
  • On this news, shares of Harborside fell 7% per share, to close at $0.49 per share on July 1, 2020.
  • For more information on the Gol class action go to: https://bespc.com/GOL
    About Bragar Eagel & Squire, P.C.
  • The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country.


NEW YORK, Sept. 16, 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 Harborside, Inc. (Other OTC: HSDEF), LexinFintech Holdings, Ltd. (NASDAQ: LX), Colony Credit Real Estate, Inc. (NYSE: CLNC), and Gol Linhas Aereas Inteligentes S.A. (NYSE: GOL). 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.

Harborside, Inc. (Other OTC: HSDEF)

Class Period: July 2, 2019 to August 12, 2020

Lead Plaintiff Deadline: November 9, 2020

On May 29, 2020, the Company issued a press release entitled “Harborside Inc. Announces Intent to Restate Certain Historical Financial Statements and Delay in Filing Annual Financial Statements and MD&A” regarding the newly announced needed financial restatements and the suspension of trading of its Canadian shares.

On this news, shares of Harborside fell 2% per share over the next two trading days to close at $0.45 per share on June 2, 2020.

On June 22, 2020, Harborside issued a press release entitled “Harborside Inc. Provides Update to Management Cease Trade Order and Cease Trade Order” regarding its delayed restatements and the continued suspension of trading of its Canadian shares.

On this news, shares of Harborside fell l2% per share over the rest of the trading day and the next full trading day to close at $0.45 per share on June 23, 2020.

On June 30, 2020 issued a press release entitled “Harborside Inc. Provides Update on MCTO and Financial Statement Filings” regarding its delayed restatements and the continued suspension of trading of its Canadian shares.

On this news, shares of Harborside fell 7% per share, to close at $0.49 per share on July 1, 2020.

On July 10, 2020 issued a press release entitled “Harborside lnc. Provides Update on Financial Statement Filings” regarding its delayed restatements and the continued suspension of trading of Its Canadian shares.

On this news, shares of Harborside fell l3% per share, to close at $0.46 per share on July 13, 2020.

On August 12, 2020, Harborside filed with the Canadian securities regulatory authorities its Unaudited Restated Condensed Interim Consolidated Financial Statements for the Three and Six Months Ended June 30, 2019 and 2018.

On this news, shares of Harborside fell over 5%, to close at $0.67 per share on August 13, 2020.

The complaint, filed on September 9, 2020, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Harborside had undisclosed material weaknesses and insufficient financial controls; (2) Harborside’s previously issued financial statements were false and unreliable; (3) Harborside’s earlier reported financial statements would need restatement; (4) as a result of the foregoing and subsequent reporting delays, Harborside’s Canadian stock trading would be suspended; (5) Harborside downplayed the negative impacts of errors and delays regarding its financial statements; and (6) as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

For more information on the Harborside class action go to: https://bespc.com/HSDEF

LexinFintech, Ltd. (NASDAQ: LX)

Class Period: December 21, 2017 to August 24, 2020

Lead Plaintiff Deadline: November 9, 2020

On August 25, 2020, Grizzly Research published a report describing, among other things, how the Company: (i) reports artificially low delinquency rates by giving borrowers  in default new funds to make payments; (ii) has a business model that exposes shareholders to enormous losses; (iii) was still conducting direct peer to peer lending despite claiming otherwise, (iv) lacked internal controls; and (v) conducted undisclosed related party transactions.

On this news, shares of LexinFintech stock fell $0.47 per share or 5.52% to close at $8.04 per share on August 25, 2020

The complaint, filed on September 9, 2020, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) LexinFintech reported artificially low delinquency rates by giving borrowers in default new funds to make payments; (2) the Company’s business model exposes shareholders to enormous losses by prioritizing Chinese lenders for off-balance sheet loans; (3) the Company exaggerated its user base; (4) the Company was facilitating direct peer to peer lending contrary to Chinese law; (5) the Company engaged in undisclosed related party transactions; (6) the Company lacked adequate internal controls; and (7) as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

For more information on the LexinFintech class action go to: https://bespc.com/LX

Colony Credit Real Estate, Inc. (NYSE: CLNC)

Class Period: Common stock purchased or otherwise acquired pursuant and/or traceable to the Registration Statement and Prospectus (collectively, the “Registration Statement”) issued in connection with the combination of Colony NorthStar, Inc. (“Colony NorthStar”) and NorthStar Real Estate Income Trust, Inc. (“NorthStar I”) and NorthStar Real Estate Income II, Inc. (“NorthStar II”) on or about February 1, 2018 (the “Merger”).

Lead Plaintiff Deadline: November 9, 2020

The Company’s common stock was registered with the SEC in connection with the Merger. Following the Merger, Colony Credit’s common stock was listed on the New York Stock Exchange (“NYSE”) without an initial public offering: stockholders of NorthStar I received 0.3532 shares of the Company’s Class A common stock for each share of NorthStar I common stock they owned; and stockholders of NorthStar II received 0.3511 shares of the Company’s Class A common stock for each share of NorthStar II common stock they owned.

On August 8, 2019, Colony Credit issued a press release to report its second quarter 2019 financial results, in which it reported a $119 million provision for loan losses.

On this news, the Company’s share price fell $2.00 per share, or more than 12%, over two consecutive trading sessions to close at $14.05 per share on August 12, 2019.

On November 8, 2019, the Company announced a portfolio bifurcation of certain assets and disclosed a $127 million provision for loan losses.

On this news, the Company’s share price fell $2.50 per share, or nearly 18%, to close at $11.75 per share on November 8, 2019.

As of the date of the filing of this complaint, Colony Credit’s shares last closed at $5.40 per share, representing a more than 78% decline from the $25 book value per share valued at the time of the Merger.

The complaint, filed on September 10, 2020, alleges that the Registration Statement was materially false and misleading and omitted to state: (i) that the credit quality of certain of the Company’s assets had deteriorated prior to the Merger and were continuing to deteriorate at the time of the Merger; (ii) that certain of the Company’s loans, including four loans of approximately $261 million related to a New York hotel, were substantially impaired, there was insufficient collateral to secure the loans, and it was unlikely that the loans would be repaid; (iii) that, as a result, the valuation attributed to certain of the Company’s assets was overstated; (iv) that certain of the assets contributed as part of the Merger were of substantially lower value than reflected in the Company’s financial statements and the Registration Statement; (v) that, as a result, the Company’s financial condition, including its book value, was materially overstated; and (vi) that, as a result of the foregoing, the positive statements in the Registration Statement about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

For more information on the Colony Credit class action case go to: https://bespc.com/CLNC

Gol Linhas Aereas Inteligentes S.A. (NYSE: GOL)

Class Period: March 14, 2019 to July 22, 2020

Lead Plaintiff Deadline: November 10, 2020

In mid-June 2020, Gol’s auditor, KPMG, raised significant concerns about Gol during the accounting firm’s first annual audit of the Company after being hired in 2019, stating that it had an “adverse opinion” on the strength of Gol’s internal controls regarding the preparation of financial statements, adding that there was “substantial doubt” about the airline’s ability to exist a year from now.” KPMG’s adverse opinion prompted Gol to carry out a review of its financial reporting procedures.

On July 23, 2020, GOL announced that it had dismissed KPMG as the Company’s registered auditing firm.

On this news, shares of GOL fell $.055 per share, or 7%, to close at $7.25 per share on July 23, 2020

The complaint, filed on September 11, 2020, alleges that throughout the Class Period  defendants made false and/or misleading statements and/or failed to disclose that: (1) GOL had material weaknesses in its internal controls; (2) there was substantial doubt as to the Company’s ability to continue to exist as a going concern because of negative net working capital and net capital deficiency; 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. When the true details entered the market, the lawsuit claims that investors suffered damages.

For more information on the Gol class action go to: https://bespc.com/GOL

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.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com

Primary Logo