NEW YORK, Feb. 28 10, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been filed on behalf of shareholders of GWG Holdings, Inc. (NASDAQ: GWGH), TaskUs, Inc. (NASDAQ: TASK) and Gatos Silver, Inc. (NYSE: GATO). Shareholders have until the deadlines below to ask the court to serve as lead plaintiff. Additional information on each case can be found at the link provided.
GWG Holdings, Inc. (NASDAQ: GWGH)
Recourse period: June 3, 2020 Bond issue
Lead Applicant Deadline: April 19, 2022
On January 18, 2022, GWG disclosed that its annual report would likely be filed “by the due date of March 31, 2022” due to “the recently disclosed decision of its registered independent accounting firm to decline to represent himself”. The company further disclosed that it “has not made as of January 15, 2022 interest payments of approximately $10.35 million and principal payments of approximately $3.25 million relating to its proceeds. L Bonds” and that it had elected to “voluntarily suspend sales of L Bonds effective January 10, 2022.” At this news, GWG’s stock price fell $2.17 per share, or 27.7%, to close at $5.65 per share on January 18, 2022.
Then, on January 27, 2022, The Wall Street Journal reported that GWG had received a subpoena from the Securities and Exchange Commission requesting documents. The article also said that a lawyer representing several L-bond investors said his clients were retail investors who bought the bonds after hearing that the products were safe and would provide a comfortable income stream for their retirement, but that ‘”They were shocked to learn that their money was used to pay former investors as the company was investigated by the SEC.
Following this news, GWG’s stock fell more than 20% in intraday trading on January 27, 2022.
For more information on the GWG class action, please visit: https://bespc.com/cases/GWGH
TaskUs, Inc. (NASDAQ:TASK)
Course period: June 11, 2021 – January 19, 2022
Lead Applicant Deadline: April 25, 2022
The complaint alleges that throughout the class action period, defendants asserted that TaskUs had “industry-leading growth and profitability” and a “simply huge” market opportunity. The complaint further alleges that the defendants touted the size of the company’s workforce and “low levels of employee attrition,” which “leads to lower hiring and training costs.”
These statements were materially false and misleading. On January 20, 2022, Spruce Point Capital Management, LLC (“Spruce Point”) released a report titled “Bull Case Content Moderation” based on its “financial and accounting review” of TaskUs. Spruce Point found that TaskUs “has a pattern of exaggerated and inflated business claims, including revenue, and conceals financial constraints with reduced disclosures, hand-picked market data, and non-standard key performance indicators.” Additionally, Spruce Point said, “We find evidence of growing tension in the relationship ‘between TaskUs and its largest customer Facebook’ and believe margins and cash flow are expected to contract more than expected.” Spruce Point also stated, “We are seeing a pattern of [TaskUs] embellishing its workforce size and making overly optimistic revenue growth claims.
This disclosure led to a dramatic decline in the value of TaskU’s shares, causing significant harm to investors.
For more information on the TaskUs class action, please visit: https://bespc.com/cases/TASK
Gatos Silver, Inc. (NYSE: GATO)
Class Period: October 28, 2020 IPO; October 28, 2020 – January 25, 2022
Lead Applicant Deadline: April 25, 2022
The dispute relates to statements by Gatos regarding its Cerro Los Gatos (“CLG”) mine located in Chihuahua, Mexico, including the Company’s estimates in its technical report dated July 1, 2020 (“2020 Technical Report”) that the CLG deposit “contains approximately 9.6 million diluted tonnes of proven and probable mineral reserves.
According to the complaint, the defendants made materially false and misleading statements and failed to disclose material adverse facts, including: (1) that the 2020 Technical Report contained errors; and (2) that, among other things, GLG’s mineral reserves had been overestimated by up to 50%.
The truth came to light on January 25, 2022, when Gatos revealed that during a resource and reserve update process, which included a detailed reconciliation of recent production performance, the company concluded that there were errors in the 2020 technical report, as well as indicate that there is an overestimation in the existing resource model. Accordingly, the Company has estimated a potential reduction in the metal grade of CLG’s Mineral Reserves ranging from 30% to 50% of the metal grade and cautioned that resource and reserve estimates should not be relied upon. minerals in the 2020 technical report.
This revelation sent Gatos’ stock price plummeting by as much as 70% on January 26, 2022.
For more information on the Gatos Silver class action, please visit: https://bespc.com/cases/GATO
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertisement. Prior results do not guarantee similar results.
Bragar Eagel & Squire, CP
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.