NEW YORK, July 14, 2024 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been commenced on behalf of shareholders of Marinus Pharmaceuticals, Inc. (NASDAQ: MRNS), 2U, Inc. (NASDAQ: TWOU) and Lamb Weston Holdings, Inc. (NYSE: LW). Shareholders have until the deadlines set forth below to ask the Court to serve as lead plaintiff. For more information about each case, please see the link provided.
Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS)
Teaching period: 17 March 2021 – 7 May 2024
Deadline for lead plaintiff: August 5, 2024
According to the complaint, throughout the Class Period, defendants made materially false and/or misleading statements and/or failed to disclose that: (1) defendants underestimated the risk of failure to meet the criteria for early termination of the RAISE study; (2) defendants failed to disclose that a potential consequence of failure to meet the criteria for early termination of the RAISE study would be that Marinus would terminate the separate Phase 3 RAISE II study; and (3) as a result, defendants’ statements about their business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all times.
For more information about the Marinus class action lawsuit, please visit: https://bespc.com/cases/MRNS
2U, Inc. (NASDAQ: TWOU)
Teaching period: February 9, 2022 – February 12, 2024
Deadline for lead plaintiff: August 12, 2024
On November 9, 2023, after the market closed, the Company announced that 2U and USC would end their 15-year collaboration in the Company’s core programs and that USC would pay approximately $40 million in connection with this exit. The Company also announced that it would record a total of $80 million in the fourth quarter related to partners seeking negotiated exits from certain degree programs, which the Company euphemistically referred to as “portfolio management activities.” The Company said these portfolio management activities would offset a 21% decline in full-course equivalent enrollment primarily due to “the impact of the transition to a new marketing framework in mid-2022.” The company also announced its fiscal quarter results, showing that degree program revenue was flat year-on-year, total revenue decreased 1%, and revenue from the alternative qualifications segment decreased 3%.
On this news, 2U’s share price fell $1.35, or 56.72%, to close at $1.03 on November 10, 2023, amid unusually high trading volume.
Then on February 12, 2024, after the market close, 2U announced that due to the company’s indebtedness, there is “significant doubt about its ability to continue as a going concern.” The company further announced that it had generated $88.0 million in revenue from portfolio management activities (i.e., negotiated fees for early termination of partnership agreements) in the current year and expected to generate an additional $10 million from such activities in the first quarter of 2024, and at least $15 million in full-year 2024. The company also announced full-year revenue of $946 million, significantly missing the company’s guidance of $965 million to $990 million, and announced that revenue from the degree and alternative qualifications segments and total revenue decreased 2% year-on-year. The company also issued full-year 2024 guidance, projecting revenue to decline further to $805 million to $815 million from $946 million.
Following this news, 2U’s share price fell $0.55, or 59.33%, to close at $0.37 on February 13, 2024, amid unusually high trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company was unable to maintain relationships with key universities and organizations; (2) as a result, certain degree programs and partnerships did not materialize or were canceled; (3) the Company’s transformation into a platform company would result in a decline in enrollment in full degree programs; (4) accordingly, the Company overstated the stability and/or longevity of its contractual arrangements and/or revenue streams; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.
For more information about the 2U class action lawsuit, please visit: https://bespc.com/cases/TWOU
Lamb Weston Holdings, Inc. (NYSE: LW)
Class period: July 25, 2023 – April 3, 2024
Deadline for lead plaintiff: August 12, 2024
Lamb Weston is the largest manufacturer of frozen potato products in North America and the second largest in the world. The company sells its products to restaurants and retailers around the world. One of Lamb Weston’s largest customers is the fast-food chain McDonald’s.
On July 25, 2023, Lamb Weston announced that it had completed the design phase of a new enterprise resource planning (“ERP”) software system that the Company would implement across all of its operations. According to the Company, this new software system would manage and integrate key aspects of the Company’s business, including, among others, supplier payments, inventory, warehousing, customer invoices and order deliveries. Investors were told that the new ERP system would replace Lamb Weston’s legacy financial and operational systems, which, according to the Company’s Chief Financial Officer, suffered from Lamb Weston’s “decades of underspending in (information technology).” In late November 2023, Lamb Weston transitioned some of its core systems to the new ERP infrastructure.
The lawsuit alleges that throughout the Class Period, Defendants made numerous material misrepresentations and omissions regarding the design and implementation of Lamb Weston’s new ERP system. Specifically, throughout the Class Period, Defendants (1) claimed that Lamb Weston “strengthened its operating infrastructure” by designing the Company’s new ERP system. (2) The Company also downplayed any problems it experienced implementing the system as merely “common obstacles” and told investors that its fiscal year 2024 financial guidance adequately accounted for any negative financial impacts related to the implementation of the system.
The lawsuit further alleges that the truth came to light on April 4, 2024, when Lamb Weston reported financial results for its third fiscal quarter of 2024 and disclosed significant issues with the transition to the new ERP system. These issues caused Lamb Weston to incur over $130 million in lost revenue in the third quarter and required the company to significantly reduce its revenue forecast for the full fiscal year. The unsuccessful ERP transition resulted in Lamb Weston having “less visibility into finished goods inventory in ( ) distribution centers,” which negatively impacted the company’s ability to fulfill customer orders, resulting in delayed deliveries and canceled orders. Overall, Lamb Weston’s disastrous ERP system rollout negatively impacted the company’s net sales by $135 million, net income by $72 million, and adjusted earnings before interest, taxes, depreciation, and amortization by $95 million. Lamb Weston also lowered its fiscal year 2024 revenue forecast by $330 million to the midpoint. The company said it expects fourth-quarter fiscal year 2024 sales to be negatively impacted by some customers affected by Lamb Weston’s botched ERP transition, as those customers turned to Lamb Weston’s competitors to meet their needs. As a result of these revelations, Lamb Weston’s stock price fell $19.59 per share, or over 19%.
For more information on the Lamb Weston class action lawsuit, please visit: https://bespc.com/cases/LW
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 in state and federal courts across the country. For more information about the firm, visit www.bespc.com. Attorney advertising. Past results do not guarantee similar results.
Contact information:
Bragar Eagle & Squire, PC
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
[email protected]
www.bespc.com
