NEW YORK, March 17, 2023 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against FTX Tokens (CCC: FTT), G-III Apparel Group, Ltd. (NASDAQ: GIII), Bright Green Corporation (NASDAQ: BGXX), and Consensus Cloud Solutions, Inc. (NASDAQ: CCSI). 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.
FTX Tokens (CCC: FTT)
On November 2, 2022, Coindesk published an article entitled “Divisions in Sam Bankman-Fried’s Crypto Empire Blur on His Trading Titan Alameda’s Balance Sheet” which revealed alleged issues with Alameda Research and FTX’s close relationship and Alameda Research’s large FTT holdings.
Then, November 6, 2022, Binance’s Chief Executive Officer, Changpeng Zhao announced on Twitter that Binance would liquidate its FTT holdings “[d]ue to recent revelations that have come to light[.]”
On November 8, 2022, The Wall Street Journal published an article entitled “Binance’s Deal for Rival FTX Marks Power Shift Amid Crypto Turmoil” which discussed Binance’s non-binding agreement to purchase FTX amid FTX’s “sudden liquidity crunch”.
Then, on November 9, 2022, The Wall Street Journal published an article entitled “Binance Walks Away From Deal to Rescue FTX” which discussed the deal falling through which left FTX with “a shortfall of up to $8 billion, according to people familiar with the matter.”
On November 10, 2022, The Wall Street Journal published an article entitled “SEC, DOJ Investigating Crypto Platform FTX” which discussed the newly known investigations.
On the above news, the price of FTT has fallen sharply on unusually heavy trading volume.
For more information on the FTX investigation go to: https://bespc.com/cases/FTT
G-III Apparel Group, Ltd. (NASDAQ: GIII)
On November 30, 2022, the Company announced third quarter fiscal 2023 results, which revealed that quarterly earnings per share missed analyst estimates. The Company also announced it was updating its guidance for fiscal year 2023, citing higher inventory levels causing “logistical challenges.” Following this announcement, the Company’s stock price dropped.
For more information on the G-III investigation go to: https://bespc.com/cases/GIII
Bright Green Corporation (NASDAQ: BGXX)
On June 2, 2022, Green Market Report (“Green Market”) published a report entitled “Bright Green Former CEO Claims Valuation Fraud,” which stated that the Company “involves a burned-down building, a years-long battle with the state of New Mexico, a bankruptcy case, and an angry former CEO who is accusing the company of fraud.” Per the Green Market report’s allegations, John Stockwell, listed as the Company’s CEO in 2017, filed for bankruptcy in the state of New Mexico in 2017. After a greenhouse fire “devastated Stockwell financially,” the reported stated that “greenhouses were transferred to Lynn Stockwell,” John Stockwell’s wife and a Bright Green Board member, “who then transferred the property to Bright Green.” In addition, the report stated that Bright Green’s former CEO John Fikany is suing the company, alleging that “Bright Green was a ‘sham, operated illegally and fraudulently’” by the Stockwells.
On this news, Bright Green’s stock price fell $0.56 per share, or 15.56%, to close at $3.04 per share on June 3, 2022.
For more information on the Bright Green investigation go to: https://bespc.com/cases/BGXX
Consensus Cloud Solutions, Inc. (NASDAQ: CCSI)
On February 22, 2023, CCSI disclosed in a filing with the U.S. Securities and Exchange Commission that “[d]uring the preparation of its annual report on Form 10-K for the fiscal year ended December 31, 2022, the Company identified unintentional errors primarily relating to (i) to a legacy accounting practice, inherited from the spin transaction in its SoHo business that grossed up revenue by $1.9 million and $5.3 million for the three and nine month periods ended September 30, 2022, respectively, with a corresponding offset to bad debt expense and (ii) the timing of revenue recognition of $2.2 million and $2.5 million for the three and nine month periods ended September 30, 2022, respectively, which after review, the Company has concluded should be reclassified as deferred revenue.” Accordingly, the Company’s Audit Committee “determined that the unaudited financial statements for the three and nine month periods ended September 30, 2022 (the ‘Prior Financial Statements’) should no longer be relied upon and that a restatement of the Prior Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2022 (the ‘Q3 2022 10-Q’) is required.”
On this news, CCSI’s stock price fell $12.58 per share, or 21.14%, to close at $46.92 per share on February 23, 2023.
For more information on the CCSI investigation go to: https://bespc.com/cases/CCSI
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.
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.