NEW YORK, April 19, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against CI&T Inc. (NYSE: CINT), Harbor Diversified, Inc. (OTC: HRBR), AXT, Inc. (NASDAQ: AXTI), and Morgan Stanley (NYSE: MS). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
CI&T Inc. (NYSE: CINT)
On March 7, 2024, CI&T issued a press release stating that the Company had “identified certain non-cash accounting errors related to deferred income accounting for tax-deductible goodwill, as required under IFRS – International Financial Reporting Standard (‘IFRS’).” Accordingly, CI&T advised that “(i) the Company’s audited consolidated financial statements as of and for the year ended December 31, 2022, included in its annual report on Form 20-F for the year ended December 31, 2022 filed with the United States Securities and Exchange Commission (‘SEC’) on March 28, 2023, and (ii) the Company’s unaudited condensed consolidated interim financial statements as of and for the periods ended March 31, 2023, June 30, 2023 and September 30, 2023, each previously furnished to the SEC on a current report on Form 6-K, should no longer be relied upon[.]”
On this news, CI&T’s stock price fell $0.44 per share, or 9.89%, to close at $4.01 per share on March 7, 2024.
For more information on the CI&T investigation go to: https://bespc.com/cases/CINT
Harbor Diversified, Inc. (OTC: HRBR)
On March 29, 2024, Harbor filed a Current Report on Form 8-K with the United States Securities and Exchange Commission which revealed that, on March 26, 2024, the audit committee (the “Audit Committee”) of the board of directors of Harbor concluded, after considering the recommendations of management, that the Company’s previously issued (i) consolidated financial statements and related disclosures as of and for the year ended December 31, 2022 contained in the Company’s Annual Report on Form 10-K, (ii) interim consolidated financial statements and related disclosures contained in the Quarterly Reports on Form 10-Q as of and for the first three quarters of the year ended December 31, 2022, and (iii) interim consolidated financial statements and related disclosures contained in the Quarterly Reports on Form 10-Q as of and for the first three quarters of the year ended December 31, 2023 (collectively, the “Non-Reliance Periods”) should no longer be relied upon due to misstatements contained in such financial statements, and that such financial statements should be restated.
In addition, the Company indicated that the Audit Committee’s conclusion was based on management’s review of the accounting for certain revenue under the capacity purchase agreement (the “United Agreement”) previously entered into between Air Wisconsin Airlines LLC, a wholly owned subsidiary of the Company, and United Airlines, Inc. Specifically, management determined that the decision to recognize all of the approximately $52.3 million in revenue and interest income in the consolidated financial statements and related disclosures prepared for the Non-Reliance Periods relating to certain disputed amounts under the United Agreement was not consistent with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers.
On this news, Harbor’s stock price fell $0.29 per share, or 14.25%, to close at $1.73 per share on April 1, 2024, the next trading day.
For more information on the Harbor investigation go to: https://bespc.com/cases/HRBR
AXT, Inc. (NASDAQ: AXTI)
On April 4, 2024, J Capital Research published a report concerning AXT. Inc. As per the report, “AXTI is listed in the U.S., but its business operations are almost all conducted through a subsidiary in China. AXTI wants to list that subsidiary in Shanghai to capture new financing. But the listing prospectus attracted unexpected scrutiny and unveiled a plethora of undisclosed issues in China.” Further stating, “We have uncovered a deluge of reasons why Chinese regulators potentially blocked this IPO, including falsifying data, tax evasion, improper storage of hazardous chemicals, suspicious related-party transactions, IP litigation, and defaulting on litigation, and defaulting on wages to employees.”
Following the release of this report, a decrease in the Company's share price was observed during the early morning trading on the same day, April 4, 2024.
For more information on the AXTI investigation go to: https://bespc.com/cases/AXTI
Morgan Stanley (NYSE: MS)
Shares of Morgan Stanley dropped more than 5% following a Wall Street Journal article reporting that the firm’s wealth management arm is being probed by multiple federal regulators on how its vet clients for money laundering risk.
For more information on the Morgan Stanley investigation go to: https://bespc.com/cases/MS
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. 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, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
