Cases & Investigations

Emergent BioSolutions, Inc.

By Rusty Glenn | September 21, 2021 | Comments Off on Emergent BioSolutions, Inc.

Shuman, Glenn & Stecker Investigates Emergent BioSolutions, Inc.                

DENVER, CO, September 21, 2021 – Shuman, Glenn & Stecker announces that it is investigating potential claims against certain officers and directors of Emergent BioSolutions, Inc. (“Emergent” or the “Company”) (NYSE: EBS). Emergent is a biopharmaceutical company that develops vaccines for infectious diseases.

The Firm’s investigation relates to allegations raised in a securities class action lawsuit filed against Emergent and certain of its senior officers in the U.S. District Court for the District of Maryland. The lawsuit alleges that Emergent signed deals with Johnson & Johnson (“J&J”) and AstraZeneca to provide contract development and manufacturing organization services for production of those companies’ COVID-19 vaccine candidates, and also received federal government funds in connection with Operation Warp Speed. The lawsuit further alleges that the defendants repeatedly touted Emergent’s ability and capacity to mass manufacture COVID-19 vaccines at its Baltimore, Maryland manufacturing site but failed to disclose myriad issues which would detrimentally affect its ability to do so. In April 2020, the U.S. Food and Drug Administration conducted an inspection which revealed serious problems, including deficient containment areas, necessary technology and personnel upgrades, and inadequate employee training.

On March 31, 2021, media reports revealed that ingredients for the J&J and AstraZeneca vaccines were “mixed up” at the Baltimore facility, contaminating up to 15 million doses of J&J’s vaccine. It was further revealed that this was not an isolated incident. By December 2020, Emergent was forced to discard millions of AstraZeneca vaccine doses after they were spoiled by bacterial contamination of equipment. In response, the U.S. Government placed J&J in charge of Emergent’s Baltimore facility and prohibited Emergent from producing the AstraZeneca vaccine. In response, shares of Emergent’s stock price fell by over 15% over the next two trading days to close at $78.62 on April 5, 2021. Emergent’s stock has never recovered and currently trades for approximately $55 per share.

If you currently own Emergent common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip Shuman toll free at (866) 569-4531 or email Mr. Shuman at kip@shumanlawfirm.com.

Hallmark Financial Services, Inc.

By Rusty Glenn | June 1, 2021 | Comments Off on Hallmark Financial Services, Inc.

DENVER, CO, June 1, 2021 – Shuman, Glenn & Stecker announces that it is investigating potential claims against certain officers and directors of Hallmark Financial Services, Inc. (“Hallmark” or the “Company”) (NASDAQ: HALL). Hallmark is a diversified property/casualty insurance group.

The Firm’s investigation relates to allegations raised in a securities class action against Hallmark and certain of its senior officers in the U.S. District Court for the Northern District of Texas.  The lawsuit alleges that the defendants falsely stated, among other things, that: (a) Hallmark’s loss reserve amount was adequate, appropriately calculated, effectively managed, and properly maintained to account for unpaid losses associated with Hallmark’s insurance claim files; (b) Hallmark’s claims management process included aggressively closing out new and existing insurance claims under a “fast track” process so that loss reserves could be controlled and adequately maintained; and (c) Hallmark employed a specialized, experienced, and competent claims management team that effectively evaluated and estimated loss reserves.

On March 2, 2020, Hallmark announced it would be required to increase its loss reserves by $63.8 million related to insurance policies sold in 2016 and 2017.  On this news, Hallmark’s stock price fell by $2.10 to close at $12.23 per share on March 3, 2020.  On March 11, 2020, Hallmark terminated its independent auditor, BDO USA, LLP (“BDO”).  On this news, Hallmark’s stock price fell by $2.39 to close at $5.71 per share on March 12, 2020.  On March 17, 2020, BDO disclosed that its termination resulted from Hallmark’s refusal to comply with BDO’s auditing procedures.  On this news, Hallmark’s stock price fell to $3.12 per share on March 18, 2020.  In total, between March 2, 2020 and March 17, 2020, Hallmark’s share price plummeted over 78%.     

If you currently own Hallmark common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip Shuman toll free at (866) 569-4531 or email Mr. Shuman at kip@shumanlawfirm.com.

Vanda Pharmaceuticals

By Rusty Glenn | March 18, 2021 | Comments Off on Vanda Pharmaceuticals

DENVER, CO, March 18, 2021 – Shuman, Glenn & Stecker announces that it is investigating potential claims against certain officers and directors of Vanda Pharmaceuticals, Inc. (“Vanda” or the “Company”) (Nasdaq: VNDA). Vanda is a pharmaceutical development company.

The Firm’s investigation relates to allegations raised in a securities class action against Vanda and certain of its senior officers in the U.S. District Court for the Eastern District of New York. The complaint alleges that between 2015 and 2019, Vanda was involved in a fraudulent scheme that included violations of federal Medicare, Medicaid, and Tricare programs to promote its drugs Fanapt and Hetlioz for “off-label”. The complaint further alleges that Vanda’s executives and officers knew about the prohibited promotional strategies and actively participated in the fraudulent activity. When the truth was revealed, Vanda’s stock declined over 5%.

On March 10, 2021, U.S. District Judge Frederic Block denied Vanda and its CEO’s motion to dismiss the securities class action against, paving the way for the case to proceed towards trial.

If you currently own Vanda common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip Shuman toll free at (866) 569-4531 or email Mr. Shuman at kip@shumanlawfirm.com.

Shuman, Glenn & Stecker represents investors throughout the nation, concentrating its practice in stockholder litigation.

Synchrony Financial

By Rusty Glenn | February 25, 2021 | Comments Off on Synchrony Financial

DENVER, CO, February 25, 2021 – Shuman, Glenn & Stecker announces that it is investigating potential claims against certain officers and directors of Synchrony Financial (“Synchrony” or the “Company”) (NYSE: SYF). Synchrony is a consumer financial services company.

The Firm’s investigation relates to allegations raised in a securities class action against Synchrony and certain of its senior officers in the U.S. District Court for the District of Connecticut.  The lawsuit alleges that Synchrony falsely represented that its consistent and disciplined underwriting practices led to a higher quality loan portfolio than those of its competitors. In truth, Synchrony relaxed its underwriting standards and increasingly offered private-label credit cards to riskier borrowers to sustain growth. The truth began to be revealed on April 28, 2017, when Synchrony announced disappointing first quarter 2017 earnings, driven by poor loan performance. On this news, Synchrony’s shares declined by $5.25 per share, or nearly 16%.

Following this disclosure, the Company represented that it tightened credit standards, but falsely characterized those underwriting changes as modest. In fact, Synchrony made significant modifications to its underwriting policies, but concealed that these modifications were damaging its relationships with its retail partners, including Walmart Inc. (“Walmart”). On July 26, 2018, news outlets reported that Walmart chose a competitor to replace Synchrony. On this news, Synchrony’s shares declined nearly 14%. Then, on November 1, 2018, Walmart sued Synchrony, accusing Synchrony of improper underwriting in connection with the Walmart/Synchrony credit card program. Synchrony shares fell by over 10% on this development.

On March 31, 2020, the District of Connecticut dismissed the securities class action.  On February 16, 2021, however, the U.S. Court of Appeals for the Second Circuit reversed (in part) the dismissal and remanded the securities class action to the District of Connecticut, paving the way for the case to proceed towards trial.

If you currently own Synchrony common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip Shuman toll free at (866) 569-4531 or email Mr. Shuman at kip@shumanlawfirm.com.