Triple class action lawsuits were filed in succession mid-March this year, contending that a collective of three companies has duped their investors of each company’s true valuation and placement in the stocks market and other misdeeds.
Federal courts in the state of New York welcomed two separate class action lawsuits filed against wellness company Neptune and cryptocurrency company Bit Digital by angry investors who want to ask the court to hold the companies accountable for their alleged misdeeds through a court battle.
Marvin Gong, an investor in wellness company Neptune, served as the lead plaintiff in the class action filed against the company.
Gong alleges that Neptune has made deceptive claims in order to dupe investors like him into investing their money to help the company run a recent acquisition it has made.
The scheme allegedly ran for two years as the company’s officials continued making false claims regarding Neptune’s state of business and operations along with the compliance policies mandated by law.
This act of deception led to the company experiencing a slump in its financial results, as reported mid-February this year, resulting in a three-decile drop in Neptune’s stock price in the market.
On the other hand, Joseph Franklin Monkam Nitcheu is the lead plaintiff in the class action lawsuit filed against Bit Digital, a cryptocurrency company.
Nitcheu is accusing the company of fooling investors into investing in the company’s allegedly ‘fake cryptocurrency business.’
He believed that this is a business model used by Bit Digital to steal funds from investors.
The class action stemmed from the company’s recent stock losses in January this year after a research firm has released an expose on Bit Digital’s bitcoin mining operations overseas.
According to their report, there were no bitcoin mining operations present in China as certified by local authorities there.
This finding runs counter to the company’s claims made to its investors that it has over 22,000 bitcoin miners supposedly doing business on behalf of the company in the area.
On the other hand, investors from the other side of the coast harbor have the same resentment as their peers on the Eastern seaboard.
Californian investors have filed a class action lawsuit against the business entity Sequential Brands Group.
The company, which is focused on fashion, home goods, and footwear products, has allegedly tricked investors after it has released the company’s financial books that fail to account for the company’s intangible assets and goodwill.
Peter D’Arcy, the person taking the lead in the complaint, accuses Sequential Brands Group and its officials of artificially manipulating the company’s stock prices for two years, starting in 2016.
The artificial inflation caused by the company’s officials was not included in the company’s financial statements and reporting to its investors, most especially those parts that may cause a negative impact on the company’s accounting.
Yet, when the cat was officially out of the bag, it caused a major dip in the company’s stock prices – hurting investors’ interests in the process.
Editor’s Note on Class Action Lawsuits Against Neptune, Bit Digital, & Sequential Brands Group:
This article aims to give you the latest news regarding three different companies duping their investors through misleading and outright false statements resulting in different class action lawsuits.
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