Federal Class Action Filed Against Suntrust Banks, Inc. in Georgia Federal Court Seeks Injunctive Relief Related to Alleged Misconduct

By Garrett Bradley, Esq. and Guillaume Buell, Esq.

Published on April 22, 2019

On April 10, 2019, a class action lawsuit was filed against SunTrust Banks, Inc. and numerous individual defendants alleging misconduct in connection with SunTrust’s acquisition by affiliates of BB&T Corporation. The case is a stockholder class action brought on behalf of public stockholders of SunTrust Banks, Inc. against SunTrust and the members of SunTrust’s Board of Directors for their violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 14a-9, 17 C.F.R. § 240.14a-9, and to enjoin the vote on the proposed transaction.

The complaint alleges that the Registration Statement, which recommends that SunTrust stockholders vote in favor of the Proposed Transaction, omits or misrepresents material informationconcerning, among other things: (i) SunTrust’s and BB&T’s financial projections relied upon by the Company’s financial advisor, Goldman Sachs & Co. LLC in its financial analyses; (ii) the valuation analyses prepared by Goldman in connection with the rendering of its fairness opinion; and (iii) the background process leading to the Proposed Transaction. The failure to adequately disclose such material information constitutes a violation of Sections 14(a) and 20(a) of the Exchange Act as SunTrust stockholders need such information in order to make a fully informed decision whether to vote in favor of the Proposed Transaction.

The Complaint further alleges that unless remedied, SunTrust’s public stockholders will be forced to make a voting decision on the Proposed Transaction without full disclosure of all material information concerning the Proposed Transaction being provided to them. Plaintiff seeks to enjoin the stockholder vote on the Proposed Transaction unless and until such Exchange Act violations are cured.

The Complaint asserts that injunctive relief pursuant to Section 14(a) is appropriate to ensure defendants’ misconduct is corrected.

Thornton Law Firm is investigating the merits of this matter. Any interested investors may contact the firm’s securities litigation attorneys via email at shareholder@tenlaw.com or calling (617) 720-1333.

Thornton’s securities litigators have extensive experiencing litigating under the Securities Act of 1933 and the Securities Exchange Act of 1934. Congress passed both these laws to protect investors from securities fraud. The basic purpose of the 1934 and 1933 regulatory statutes is to protect investor confidence in the securities markets.

Misconduct Allegations Against YRC Worldwide Inc. Basis of New Securities Class Action

By Garrett Bradley, Esq. and Guillaume Buell, Esq.

Published on April 19, 2019

On January 2, 2019, a class action complaint for violations of the federal securities laws was filed against YRC Worldwide Inc. The complaint alleges that the Defendants misrepresented and failed to disclose the following adverse facts pertaining to the Company’s business, operational and financial results, which were known to Defendants or recklessly disregarded by them. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) from 2005 to at least 2013, YRC Worldwide’s units systematically overcharged the federal government for freight carrier services; (2) this alleged misconduct caused the Department of Defense to overpay by millions of dollars for shipments that were lighter, and thus cheaper, than the weights for which the government was charged; (3) consequently, this alleged misconduct would subject YRC Worldwide to enhanced government scrutiny and liabilities, including potentially owing treble damages under the False Claims Act; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times. 

YRC Worldwide provides various transportation services primarily in North America. It operates as a holding company with two reporting segments: YRC Freight (longer haul trucking) and Regional Transportation (regional and next-day delivery markets). The Company is incorporated in Delaware and has facilities throughout the United States, including Albany, New York. The Company’s securities are traded on the NASDAQ under the ticker symbol “YRCW.” 

The lawsuit, with its focus on misconduct allegations, is a federal securities class action on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired the publicly traded securities of YRC Worldwide from March 10, 2014 through December 14, 2018, both dates inclusive (the “Class Period”). Plaintiff seeks to recover compensable damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder. 

Thornton Law Firm is investigating the merits of this matter. Any interested investors may contact the firm’s securities litigation attorneys via email at shareholder@tenlaw.com or calling (617) 720-1333. 

Thornton’s securities litigators have extensive experiencing litigating under the Securities Act of 1933 and the Securities Exchange Act of 1934. Congress passed both these laws to protect investors from securities fraud. The basic purpose of the 1934 and 1933 regulatory statutes is to protect investor confidence in the securities markets. 

Securities Class Action Filed Against MobileTeleSystemsPJSC Alleges Overseas Misconduct

By Garrett Bradley, Esq. and Guillaume Buell, Esq.

Posted on April 18, 2019

On March 19, 2019, a class action was filed against MobileTeleSystemsPJSC arising under the federal securities laws regarding the Company’s disclosure on March 19, 2014 that the United States Department of Justice also is conducting a parallel investigation related to the Company’s former operations in Uzbekistan which concerned Mobile and not merely the activities of unaffiliated parties. The extent of the alleged misconduct is still under investigation. It is not known at this time if sanctions will be at issue.

The lawsuit seeks relief on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired the publicly traded securities of MobileTeleSystems from March 19, 2014 through March 7, 2019, both dates inclusive. Plaintiff seeks to recover compensable damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The extent of the misconduct at issue has not been fully established.

The Complaint alleges that the Defendants made false and/or misleading statements and/or failed to disclose that: (1) Mobile TeleSystems and its subsidiary were involved in a scheme to pay $420 million in bribes in Uzbekistan; (2) consequently, Mobile TeleSystems knew or should have known it would be forced to pay substantial fines to the U.S. government after disclosing in 2014 that the U.S. DOJ and SEC were investigating its Uzbekistan operations;  (3) Mobile  TeleSystems level  of  cooperation  with  the  U.S.  government  and remediation was lacking; (4) due to the aforementioned misconduct, Mobile TeleSystems would be forced to pay approximately $850 million in criminal penalties to the U.S. government; and(5) due to the foregoing, Defendants’ public statements were materially false and/or misleading at all relevant times.

On November 20, 2018, the Company disclosed that it had reserved approximately $840 million USD (RUB 55.8 bln) as the potential liability concerning investigations by the SEC and the DOJ into its former operations in Uzbekistan. 30. On  this  news, shares of Mobile TeleSystems’ stock  price fell $0.64 per share or nearly 8% to close at $7.45 per share on November 20, 2018.

On March 7, 2019, the DOJ reported that the Company and its subsidiary entered into an agreement to pay $850 million in penalties to the United States to resolve charges arising from its role in a scheme to pay $420 million in bribes in Uzbekistan. On this news, shares in Mobile TeleSystems’ stock fell $0.24 per share or over 3% to close at $7.54 per share on March 7, 2019, damaging investors.

The complaint alleges that as a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.

Thornton’s securities litigators have extensive experiencing litigating under the Securities Act of 1933 and the Securities Exchange Act of 1934. Congress passed both these laws to protect investors from securities fraud. The basic purpose of the 1934 and 1933 regulatory statutes is to protect investor confidence in the securities markets.

Thornton Law Firm is investigating the merits of this matter. Any interested investors may contact the firm’s securities litigation attorneys via email at shareholder@tenlaw.com or calling (617) 720-1333.

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