October 16, 2023
Southeastern Pennsylvania Transportation Authority (SEPTA) and the International Brotherhood of Teamsters Local 710 Pension Plan File Detailed Complaint in Abbott Shareholder Derivative Litigation
SEPTA and Teamsters Local 710, co-lead plaintiffs in the Abbott Laboratories shareholder derivative case, filed a comprehensive amended complaint on October 16, 2023. The amended complaint presents detailed allegations addressing claims related to Abbott’s production and sale of infant formula products.
The amended complaint asserts that Abbott officers and directors breached fiduciary duties by concealing safety protocol lapses at the Sturgis facility, leading to environmental contamination with Cronobacter sakazakii bacteria. Following a February 2022 FDA inspection confirming Cronobacter contamination, Abbott issued a recall of various infant formula products, impacting the U.S., Canada, and other markets. The amended complaint alleges that Abbott portrayed the recall as proactive, concealing the FDA investigation.
The closure of the Sturgis facility, due to safety concerns, resulted in massive formula shortages in the U.S., prompting the federal government to invoke the Defense Production Act to address the crisis. Further, the amended complaint references a whistleblower complaint, publicly disclosed in April 2022, alleging Abbott management's awareness of issues at the Sturgis facility, including false test records, releasing untested infant formula, and attempts to mislead the FDA.
John A. Kehoe, Partner at Kehoe Law Firm, commented on the strength of the amended complaint: "The detailed amended complaint filed by SEPTA and Teamsters Local 710 underscores the gravity of the allegations against Abbott. The document meticulously outlines breaches of fiduciary duties, concealment of safety issues, and the subsequent impact on the market. We believe these allegations are robust and compelling, reflecting our commitment to pursuing justice for shareholders and ensuring corporate accountability."
The filing of the amended complaint marks a significant milestone in the Abbott shareholder derivative case. Kehoe Law Firm remains dedicated to representing institutional investors in cases that uphold shareholder rights and seek to improve corporate governance.
For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at jkehoe@kehoelawfirm.com or call (215) 792-6676.
October 1, 2023
Kehoe Law Firm's Client, Policemen’s Annuity and Benefit Fund of Chicago, Files Amended Complaint in Twist Bioscience Corporation Securities Class Action
The Kehoe Law Firm is proud to announce that its client, the Policemen’s Annuity and Benefit Fund of Chicago (“PABF”), court-appointed lead plaintiff in the Twist Bioscience Corporation securities class action, has taken a significant step forward in the pursuit of justice. On October 11, 2023, PABF filed an amended complaint in the ongoing litigation against Twist Bioscience Corporation.
John Kehoe, Partner with the Kehoe Law Firm, commented on the filing, saying, "Our client, the Policemen’s Annuity and Benefit Fund of Chicago, remains steadfast in its commitment to seeking justice on behalf of the class of investors. The filing of the amended complaint is a crucial step in the legal process, allowing us to present a more comprehensive case that reflects the latest developments and information relevant to the securities class action against Twist Bioscience Corporation."
The securities class action alleges that Twist Bioscience Corporation, a biotechnology company specializing in synthetic DNA and DNA products, made false and
misleading statements regarding its growth prospects and financial health. The amended complaint provides additional context and evidence supporting the claims made by PABF and the proposed class of investors.
The Kehoe Law Firm continues to work diligently to represent the interests of PABF and the class, leveraging its experience and expertise in securities litigation to hold Twist Bioscience Corporation accountable for alleged securities law violations.
The complaint is pending in the U.S. District Court for the Northern District of California and captioned, Peters v. Twist Bioscience Corp., et. al., 5:22-CV-8168.
For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at jkehoe@kehoelawfirm.com or call (215) 792-6676.
September 18, 2023
U.S. District Court Appoints Southeastern Pennsylvania Transportation Authority and Teamsters Local No. 710 Pension Fund as Lead Plaintiffs in In Re Abbott Laboratories Infant Formula Shareholder Derivative Litigation
In a significant development, the United States District Court for the Northern District of Illinois Eastern Division issued an order consolidating multiple Abbott shareholder derivative cases, with the Teamsters Local 710 Pension Fund and Southeastern Pennsylvania Transportation Authority (SEPTA) appointed as co-lead plaintiffs. Kehoe Law Firm, representing institutional investors, welcomes this decision, emphasizing the importance of streamlined proceedings to address allegations related to Abbott Laboratories.
The order, issued by Judge Manish S. Shah on September 18, 2023, grants the motion to consolidate cases and appoint co-lead plaintiffs, filed by the Teamsters Local 710 Pension Fund and SEPTA. The court also denied competing motions from other plaintiffs, including New York State Comptroller Thomas P. DiNapoli, as Trustee of the New York State Common Retirement Fund.
The action concerns whether the Individual Defendants concealed lapses in safety protocols at Abbott's Sturgis, Michigan facility, and thereby breached their fiduciary duties and violated federal securities laws. The alleged lapses resulted in environmental contamination with Cronobacter sakazakii bacteria, a critical issue affecting the manufacturing of Abbott’s infant formula and leading to a notional shortage.
John A. Kehoe, Partner at Kehoe Law Firm, expressed his satisfaction with the court's decision: "We are pleased with the court's order to consolidate the Abbott shareholder derivative cases, bringing efficiency and focus to the legal proceedings. The appointment of SEPTA the Teamsters Local 710 Pension Fund as co-lead plaintiffs underscores the court's confidence in their ability to represent shareholder interests effectively. At Kehoe Law Firm, we remain committed to representing investors in cases that contribute to corporate governance accountability and protect shareholder value."
The court's decision acknowledges the competence of all parties involved, highlighting the dedication of SEPTA and Teamsters Local 710, along with their chosen counsel, in navigating the complexities of the case. The consolidated action is captioned, In Re Abbott Laboratories Infant Formula Shareholder Derivative Litigation, 22-CV-5513 (N.D. IL).
For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at jkehoe@kehoelawfirm.com or call (215) 792-6676.
September 6, 2023
KLF Client Files Lawsuit Seeking Access to Documents and Investigating Breaches of Fiduciary Duty in Weber Inc.'s Take-Private Transaction
Investor Michael D. Levine, a shareholder of grill maker Weber Inc. before its acquisition by BDT Capital Partners LLC, has filed a lawsuit in Delaware Chancery Court seeking access to company documents. The legal action aims to investigate potential breaches of fiduciary duty by Weber Inc.'s officers and directors in connection with the take-private transaction.
Weber Inc. announced in December 2022 that it would be acquired by investment funds managed by BDT Capital Partners in a take-private transaction valued at $8.05 per share, with a total enterprise value of $3.7 billion. The deal closed in February 2023, leading to the delisting of Weber's stock from the New York Stock Exchange.
Levine's complaint, filed under seal on Wednesday, outlines concerns and allegations regarding the transaction. According to Levine, the $8.05 deal price represents a substantial discount from the $14 per share paid by stockholders in Weber's initial public offering in August 2021.
The lawsuit asserts that the timing of the transaction was designed to "squeeze out public stockholders" during a period of temporary stock price depression. Levine claims that an avoidable liquidity crunch hampered the special committee formed to negotiate the deal.
The complaint also alleges that BDT approved the deal through written consent, giving minority stockholders no say in the price and no ability to veto a potentially unfavorable deal. Levine sent an inspection demand letter to Weber in January under Section 220 of Delaware General Corporation Law, seeking access to corporate books and records for investigating suspected corporate wrongdoing. While the company produced three rounds of documents, Levine contends that they were insufficient and failed to provide a clear record of the board and special committee's relevant deliberations. Many of the records were heavily redacted, concealing crucial financial and operational information.
Commenting on the lawsuit, Partner Michael Yarnoff stated, "The transaction does not appear fair to public stockholders and may have resulted from breaches of fiduciary duty by the officers and directors of the company."
For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at myarnoff@kehoelawfirm.com or call (215) 792-6676.
August 8, 2023
KLF Applauds DOJ and State AG's Support in Saks Fifth Avenue No-Poach Case
Kehoe Law Firm, a leading advocate for workers' rights, expresses its deep satisfaction and gratitude for the backing received from the U.S. Department of Justice (DOJ) and 21 state-level enforcers in the ongoing appeal before the Second Circuit. The case involves former Saks Fifth Avenue employees who allege the retailer engaged in no-hire agreements, suppressing their wages and restricting job mobility.
The DOJ and the states filed separate amicus briefs on Friday, contesting the lower court's dismissal earlier this year. The DOJ argued that the court incorrectly applied the ancillary restraints doctrine, emphasizing that the no-hire agreements were not merely "ancillary”, but the primary objective of a conspiracy aimed at reducing workers' compensation and mobility.
Michael Yarnoff, a partner at Kehoe Law Firm, expressed his appreciation for the growing support in the case: "We are pleased to see the U.S. Department of Justice and the states recognize the significance of this matter. Their involvement underscores the importance of challenging anti-worker and anti-competitive practices in the labor market."
The case, initiated by workers Susan Giordano, Angelene Hayes, Ying-Liang Wang, and Anja Beachum in February 2020, alleges that Saks prevented them from working at luxury retail stores owned by Gucci, Louis Vuitton, Prada, Brunello Cucinelli, and Loro Piana. The workers contend that these no-hire pacts violate antitrust laws, leading to lower wages and restricted mobility.
The lower court's dismissal in February prompted an appeal to the Second Circuit. The DOJ's recent brief not only challenges the per se finding but also disputes the lower court's ruling on the timeliness of claims for three workers, asserting that they were "undercompensated by Saks during the entirety of their tenures."
Michael Yarnoff expressed satisfaction with the additional support: "The antitrust issues surrounding the alleged no-hire agreement are important, not just in this case, but to workers more generally. We look forward to winning in the appellate court and then ultimately vindicating our clients rights and interests in front of a jury in Brooklyn." Kehoe Law Firm remains committed to advocating for the rights of workers and will continue to pursue justice for its clients in this crucial appeal.
For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at myarnoff@kehoelawfirm.com or call (215) 792-6676.
July 28, 2023
Policemen’s Annuity and Benefit Fund of Chicago Appointed Lead Plaintiff in Twist Bioscience Corporation Securities Class Action
The Kehoe Law Firm, a national securities litigation law firm, is pleased to announce that its client, the Policemen’s Annuity and Benefit Fund of Chicago (“PABF”), has been appointed as the lead plaintiff in the securities class action against Twist Bioscience Corporation. The United States District Court for the Northern District of California has granted PABF’s Motion for Appointment as Lead Plaintiff and Approval of its Selection of Lead Counsel.
This decision comes after a thorough review of several motions to appoint lead plaintiff and select lead counsel in the securities class action governed by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). Among the competing motions, PABF emerged as the lead plaintiff, showcasing its strong position in the litigation.
John Kehoe, Partner with the Kehoe Law Firm, expressed his satisfaction with the court's decision, stating, "We are very pleased that our client, the Policemen’s Annuity and Benefit Fund of Chicago, has been chosen to lead this important securities class action litigation. This decision reflects the confidence the court has in our client's ability to effectively represent the class and pursue justice in this matter."
The securities class action alleges that Twist Bioscience Corporation, a biotechnology company specializing in synthetic DNA and DNA products, misled investors about its growth prospects and financial health. The complaint contends that between December 13, 2019, and November 14, 2022, Twist, along with its executives, assured investors of substantial growth, only to face significant setbacks following the release of a critical report by Scorpion Capital.
Scorpion Capital's report, published on November 15, 2022, raised concerns about Twist's financial sustainability, likening its DNA chip technology to the infamous Theranos scandal. Following the report, Twist's stock price experienced a sharp decline, leading to substantial losses for investors.
PABF's lead plaintiff appointment underscores the Kehoe Law Firm's dedication to representing the interests of investors and holding corporations accountable for alleged securities law violations. The firm is committed to working diligently on behalf of its client and the class to pursue a favorable resolution in this litigation.
For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at jkehoe@kehoelawfirm.com or call (215) 792-6676.
July 21, 2023
OppFi SPAC Investors Initiate Lawsuit Over Post-Merger Decline
A group of investors in the Special Purpose Acquisition Company (SPAC) FG New America Acquisition Corp. (FGNA) filed a lawsuit against several of its executives and directors, accusing them of overselling the value of merger target Opportunity Financial. The lawsuit comes after the value of Opportunity Financial ("OppFi") plummeted by approximately 80% following the completion of the take-public transaction.
Former FGNA shareholder Sean Murray lodged the complaint in Delaware Chancery Court, naming the SPAC and certain officers and other board members as defendants. The suit is on behalf of all record and beneficial holders of FGNA common stock who held such stock on the redemption deadline of July 14, 2021, and did not redeem all such shares.
Kehoe Law Firm Partner Michael Yarnoff, who represents the plaintiffs, expressed confidence in the merits of the lawsuit. "The complaint outlines serious breaches of fiduciary duties and misrepresentations that have harmed the interests of OppFi SPAC investors," Yarnoff stated. "We believe the evidence strongly supports the allegations, and we are committed to pursuing justice for our clients."
Murray alleges that FGNA and the individual defendants failed to uphold basic principles of Delaware corporate governance, prioritizing their own financial interests over those of the company's stockholders. The lawsuit contends that decisions were made with a disregard for fiduciary duties, resulting in a value-destructive merger with Opportunity Financial.
In the complaint, Murray asserts that the defendants granted themselves financial interests misaligned with public stockholders and forced through the merger based on false and misleading disclosures. The lawsuit highlights the issuance of approximately 6.4 million shares of FGNA Class B common stock to the SPAC's sponsor, FG New America Investors LLC, and the subsequent transfer of 1.2 million "founder shares" to FGNA's directors and management.
The complaint contends that these founder shares became valuable only if FGNA closed a merger, creating a strong incentive for the defendants to pursue a business combination and avoid liquidation. This, the plaintiffs argue, compromised the decision-making process and led to a deal that was not in the best interests of public stockholders.
Notably, Murray alleges that FGNA's negotiations with Opportunity Financial were tainted by financial conflicts, and the board served merely as a "rubber stamp." The lawsuit claims that the proxy statement issued by FGNA omitted crucial information about the merger's value, including high dilution of FGNA shares and misleading representations about Legacy OppFi's financial projections.
For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at myarnoff@kehoelawfirm.com or call (215) 792-6676.
April 14, 2023
KLF Scores Another Appellate Victory as Second Circuit Rules in Favor of FX Primus, Ltd., Affirming District Court’s Prior Decision
KLF is pleased to announce that our client, FX Primus Ltd., a leading financial services company, scored a significant legal victory before the Second Circuit Court of Appeals. The Second Circuit affirmed the district court's prior decision, upholding the rejection of most of the claims brought by AMA Capital, LLC ("AMA") in an antitrust class-action settlement.
The settlement agreement in question mandated that claimants provide transactional records to support their claims, with the claims administrator having the discretion to deem documents acceptable. AMA's claims were rejected, primarily due to its failure to provide the required records. The district court concurred with this decision and denied AMA's motion for reconsideration.
On appeal, AMA contended that the district court erred by not considering documents submitted during the post-rejection contest process and by applying improper evidentiary requirements. The Second Circuit Court of Appeals, however, affirmed the district court's orders, determining that the claims administrator was not obligated to accept records during the contest process if they were previously available to AMA. The court also found no error in the district court's denial of AMA's claims.
Partner John A. Kehoe, representing FX Primus Ltd., expressed satisfaction with the outcome, stating, "This decision reaffirms the integrity of the settlement agreement, which required claimants to substantiate their claims with acceptable documents. The court's ruling underscores the importance of adhering to the stipulated procedures and evidentiary requirements outlined in the settlement agreement."
The Kehoe Law Firm remains committed to upholding the principles of fairness and adherence to legal processes in financial matters. The successful resolution of this appeal further reinforces our dedication to ensuring the integrity of class-action settlements.
For more information about the FX indirect purchaser antitrust litigation and the related settlement, please visit the claims administrator’s website, available here:
https://www.fxindirectantitrustsettlement.com/
For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at jkehoe@kehoelawfirm.com or call (215) 792-6676.
February 24, 2023
Kehoe Law Firm on Behalf of and its Client Southeastern Pennsylvania Transportation Authority Pension Plan (“SEPTA”) and International Brotherhood of Teamsters Local 710 Move to Intervene in Abbott Inc. Shareholder Derivative Action
Southeastern Pennsylvania Transportation Authority Pension Plan and Teamsters Local 710 have moved to intervene in the Abbott Inc. Derivative Litigation pending in the Northern District of Illinois. The lawsuit, filed in October 2022, alleges wrongdoing by certain officers and directors of Abbott at least during the period from November 19, 2021, through June 8, 2022.
Specifically, the Individual Defendants are alleged to have breached their fiduciary duties and to have violated federal securities laws by concealing lapses in safety protocols at Abbott's Sturgis, Michigan facility. These lapses resulted in environmental contamination with Cronobacter sakazakii bacteria, a critical issue affecting the manufacturing of infant formula.
In February 2022, the FDA reportedly confirmed Cronobacter contamination at the Sturgis facility, leading to a recall of various infant formula products. According to the complaint, Abbott executives portrayed the recall as a proactive measure to protect the public, not disclosing the FDA investigation.
Abbott eventually closed the Sturgis facility due to safety concerns, causing massive formula shortages in the U.S., Canada, and other markets. The federal government invoked the Defense Production Act to address the shortages.
In May 2022, the Senate Finance Committee launched an investigation into Abbott's international tax practices and stock buybacks, linking them to the Sturgis facility issues. Not until June 2022 did Abbott disclose that it was aware of the whistleblower complaint in early 2021, contributing to a decline in the company's stock price.
The actions during the Relevant Period led to significant repercussions, including stock decline, a class action lawsuit, and potential liability exposure for Abbott.
SEPTA and Teamsters Local 710 have moved to intervene in this derivative action, captioned In Re Abbott Laboratories Infant Formula Shareholder Derivative Litigation, 1:22-CV-5513 (N.D. IL), thereby demonstrating their commitment to protecting shareholder interests and holding Abbott's officers and directors accountable for alleged misconduct.
John A. Kehoe, Partner at Kehoe Law Firm, commented: "We are pleased to see Southeastern Pennsylvania Transportation Authority Pension Plan and Teamsters Local 710 take a stand in intervening in the Abbott shareholder derivative action. Institutional shareholders play a crucial role in holding corporations accountable for their actions and advocating for positive governance reforms. This intervention marks a step towards transparency, accountability, and responsible corporate practices."
For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at jkehoe@kehoelawfirm.com or call (215) 792-6676.