Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Caribou, Inspirato, Kornit, and Alico and Encourages Investors to Contact the Firm – Alico (NASDAQ:ALCO), Caribou Biosciences (NASDAQ:CRBU)


NEW YORK, March 27, 2023 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Caribou Biosciences, Inc. CRBU, Inspirato Incorporated ISPOKornit Digital Ltd. KRNTAlico, Inc. ALCO. Stockholders have until the following deadlines to petition the court for the role of lead plaintiff. You can find additional information at the provided link.

Caribou Biosciences, Inc. CRBU

Class Period: Pursuant to and/or traceable the November 20, 2020 IPO. Pursuant to and/or traceable the March 18, 2021 SP; November 20, 2020 – September 19, 2022.

Deadline for Lead Plaintiff: April 11, 2023

Caribou, a biopharmaceutical company in clinical stage, focuses on the development of allogeneic gene-edited cell therapies to treat solid tumors and hematologic malignancies in the U.S. CB-010, an anti-CD19 CAR -T cell therapy1 is being developed by the Company. This is a Phase 1 clinical study, also known as “ANTLER”, and is used to treat relapsed/refractory B cells non-Hodgkin lymphoma (r/r BNHL).

According to Defendants, CB-010 is the first clinical-stage allogeneic anti-CD19 CAR-T cell therapy with programmed cell death protein 1 (“PD-1”) removed from the CAR-T cell surface by a genome-edited knockout of the PDCD1 gene, which purportedly sets CB-010 apart from other allogeneic CAR-T cells by, inter alia, improving the “persistence” of antitumor activity.

Caribou submitted a registration statement on Form S-1 to the SEC, on July 1, 2021. This was in connection with the IPO. It was later amended several times and declared effective by SEC on the 22nd of July 2021 (the “Registration Declaration”).

Caribou’s stock started trading publicly on the NasdaqGlobal Select Market (“NASDAQ”) as a result of the Registration Statement. The ticker symbol was “CRBU” and it was listed under the ticker number “CRBU”. The same day, Caribou filed a prospectus, Form 424B4, with the SEC to discuss the IPO. It was incorporated into and made part of the Registration Statement (the Prospectus and, together with the Registration Statement the “Offering Documents”)

Caribou issued 19,000,000 shares of common stock pursuant to the Offering documents for proceeds of $282.72million to the Company before expenses and any applicable underwriting discounts.

The Offering Documents were prepared negligently and contained false statements of material facts or omitted other facts to make the statements not misleading. They were also not prepared according to the rules and regulations that govern their preparation. Defendants also made misleading and materially false statements throughout the Class Period about the Company’s prospects, business, and operations. The Offering Documents and the Defendants made misleading and false statements, and/or failed disclose that (i) CB-010’s treatment effect wasn’t as durable as Defendants led investors to believe; and (ii), CB-010’s clinical and commercial prospects had been overstated. (iii). As a result, both the Offering Documents (and Defendants’ public statements throughout Class Period were materially falsified and/or misleading, and did not state the information.

Caribou published a press statement on June 10, 2022.[p]ositive” data from the ANTLER Phase 1 clinical trial. Caribou also reported other results such as “…”[a]t 6 months following the single dose of CB-010, [only] 40% of patients remained at CR [complete response] (2 of 5 patients) as of the May 13, 2022 data cutoff date”, prompting investor concern over the durability of the CB-010 treatment.

Caribou stock closed at $6.94 per shares on June 10, 2022, after falling $1.78 per Share (or 20.41%) due to this news.

Caribou then issued a press release on December 12, 2022.[ing] New 12-month clinical data have been released from the cohort 1 of the ongoing ANTLER Phase 1 study. [purportedly] Show[ed] CB-010 infusion at initial dose 1 (40×106 CAR–T cell cells) has long-term durability. Caribou stated that 3 out of 6 patients retained a durable CCR at 6 month scan and 2 out of 6 patients retain a long-term CCR at 12 months scan. This confirms investor fears about the CB-010 treatment’s lack of durability.

This news caused Caribou’s stock to fall $0.81 per share (or 9.03%) to close at $8.16 on December 12, 2022.

Caribou common stock continues trading below the $16.00 share Offering price as of the filing of this Complaint. This is a negative for investors.

As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of Caribou’s securities, Plaintiff and other Class members have suffered significant losses and damages.

For more information on the Caribou class action go to: https://bespc.com/cases/CRBU

Inspirato Incorporated ISPO

Class Period: December 15, 2022 – May 11, 2022

Deadline for Lead Plaintiff: April 17, 2023

According to the Complaint the Company made misleading statements to market. Inspirato’s financial statements, including those for the quarters ended March 31, 2022, and June 30, 2022 (collectively the “Non Reliance Periods”), cannot be relied on. Incorrectly applying Accounting Standards Update (ASU No. 2016-02 Leases (Topic 852) (“ASC 842)” caused the Non-Reliance Periods to be unreliable. These facts prove that the Company’s public statements throughout the class period were false and misleading. Investors suffered losses when Inspirato was exposed to the public.

For more information on the Inspirato class action go to: https://bespc.com/cases/ISPO

Kornit Digital Ltd. KRNT

Class Period: July 5-2022 – February 17, 2021

Deadline for Lead Plaintiff: April 17, 2023

Kornit is a manufacturer of industrial digital printing technologies that are used in the textile, garment, and apparel industries. End-users can print direct-to fabric (“DTF”) or direct-to garment (“DTG”) using the Company’s digital printers. DTG printing is where designs and images can be printed directly onto textiles like clothing and apparel. In DTF printing, large rolls of fabric pass through wide inkjet printers that print images and designs directly onto swaths of fabric that are then cut and sewn into a product, and can be used in the fashion and home décor industries. Kornit also sells textile inks, and other consumables to use with its digital printers. Kornit offers customer support contracts that provide technical support and equipment services to its printers.

During the Class Period, KornitX began offering software services to customers. It offers a suite of end–to-end fulfillment, production and management solutions.

Amazon.com, Inc. (“Amazon”) is the largest customer of Kornit. Other customers of Kornit during the Class Period included Delta Apparel, Inc. (“Delta Apparel”), which is a major provider of activewear, lifestyle apparel, and Fanatics, Inc. (“Fanatics”), which is a global digital platform that provides licensed merchandise and a leader in licensing. Kornit earns over 60% of its revenues through its ten largest customers. Accordingly, it was critically important for Kornit to maintain those major customers as well as continue to grow its customer base in order to achieve the Company’s ambitious goal of “becoming a $1 billion revenue company in 2026.”

Kornit repeatedly emphasized the purported competitive benefits of its technology throughout the Class Period and assured investors that there was virtually no competition in the “direct to-garment” printing market. Kornit also claimed that its digital printing systems and consumable products (such as textile inks) were in high demand. Kornit also provided services to customers to help them maintain and manage their digital printers and manage their customer workflows. Kornit also assured investors that there was strong demand for its products and services, which would allow it to retain its existing customers and attract new ones. This would reduce the risk associated with a large portion of the Company’s revenues being concentrated in a few large customers.

These statements and others made during the Class Period were false. Kornit and its senior executives did not know, or at least recklessly disregard, the fact that the Company’s digital printer business was plagued in quality control and customer service issues. These issues and deficiencies caused Kornit’s market share to be ceded to competitors. This in turn led to a decline of revenue for the Company, as customers went to other places to print their digital printing requirements. These misrepresentations led to Kornit’s ordinary shares trading at artificially high prices during the Class Period.

Investors began to learn the truth on March 28, 2022, when Delta Apparel and Fanatics—two of Kornit’s major customers—announced that for months they had collaborated with one of Kornit’s principal competitors to develop a new digital printing technology that directly competed with products and services Kornit offered. Delta Apparel said that the technology had been installed in four of its digital print facilities already and plans to expand. The utilization of this new, competing technology by Delta Apparel and Fanatics reflected the widespread dissatisfaction of Kornit’s major customers with the Company’s product quality and customer service, and meant that Kornit would likely lose revenue from two of its most important customers.

Kornit reported a net loss for its first quarter 2022, even though it had reported revenues exceeding expectations. This compares to a profit in the previous year period of $5.1million. The revenue guidance issued by the Company for the second quarter 2022 was also significantly lower than analysts’ expectations. Kornit blamed the Company’s disappointing guidance on a slowdown of orders from its customers in the ecommerce segment. The Company also admitted that it knew for at least two quarters that Delta Apparel had purchased digital printing systems from Kornit competitors. These disclosures resulted in Kornit’s ordinary shares falling by $18.78, or 33.3%,

Kornit then announced that it would report a significant revenue shortfall for the second quarter 2022 on July 5, 2022 after the market had closed. Kornit expects revenue to range from $56.4 million-$59.4 million for the second period. This is significantly lower than the revenue guidance that Kornit provided in May 2022, which was between $85 and $95 millions. Kornit said that the significant revenue loss was due to “a significantly slower rate of direct-to garment (DTG) system orders in the second quarter compared to our previous expectations.” The price of Kornit ordinary shares fell by an additional $8.10, or 25.7%, as a result.

As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s shares, Plaintiff and other Class members have suffered significant losses and damages.

For more information on the Kornit class action go to: https://bespc.com/cases/KRNT

Alico, Inc. ALCO

Class Period: February 4, 2021 to December 13, 2022

Deadline for Lead Plaintiff: April 18, 2023

Alico and its subsidiaries operate in the U.S. as an agribusiness- and land management company. The Company operates as an agribusiness and land management company in the United States. It has two segments. Alico Citrus is a segment that cultivates citrus trees for fresh and processed citrus markets. The Land Management and Other Operations section owns and manages land within Collier, Glades and Hendry Counties. It also leases land for recreation and grazing, conservation and mining purposes.

Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Alico had deficient disclosure controls and procedures and internal control over financial reporting; (ii) as a result, the Company had improperly calculated Alico’s deferred tax liabilities over a multi-year period; (iii) accordingly, the Company would likely be required to restate one or more of its previously issued financial statements; (iv) the foregoing would impede the timely completion of the audit of the Company’s financial results in advance of its year-end earnings call; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Alico released a press release on December 6, 2022 announcing that it was delaying its year-end earnings conference. In particular, Alico stated in the press release that it required additional time for its independent registered public accounting firm to audit its financial results for the September 30th period.

Alico’s stock price dropped by $3.06 per shares, or 10.42% to close at $26.29 on December 6, 2022.

Alico then issued a press statement on December 7, 2022, providing an update on the Company’s fiscal year 2022 results, and the associated filings to the SEC. In the press release, the Company disclosed that “[t]he key item that is requiring such additional time involves evaluation of the proper amount of the Company’s Deferred Tax Liability, particularly certain portions of that Deferred Tax Liability arising in prior fiscal years, including those going back to fiscal year 2019 or possibly several years before fiscal year 2019.”

Alico submitted to the SEC, on December 13th 2022, its Annual Report of Form 10-K for 2022. This is the “2022 10-K”. Alico “restates” its position in the 2022-10K.[d] the Company’s previously issued audited consolidated balance sheet, audited consolidated statements of changes in equity and related disclosures as of September 30, 2021 included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2021 (the ‘2021 10-K’) previously filed with the SEC and the Company’s previously issued unaudited consolidated balance sheet, unaudited consolidated statements of changes in equity and related disclosures as of the end of each quarterly periods ended June 30, 2022, March 31, 2022, December 31, 2021, June 30, 2021, March 31, 2021 and December 31, 2020 included in the Company’s respective Quarterly Report on Form 10-Q for each of the quarters then ended previously filed with the SEC (together with the 2021 10-K, the ‘Financial Statements’).” The Company also revealed that “[o]n December 12, 2022, the audit committee (the ‘Audit Committee’) of the board of directors of the Company concluded that the Company’s previously issued Financial Statements can no longer be relied upon due to an error identified during the completion of the 2022 10-K.” Specifically, Alico stated that “[t]he error that led to the Audit Committee’s conclusion relates to the calculation of the deferred tax liabilities for the fiscal years 2015 through 2019, which resulted in a cumulative reduction in the Company’s deferred tax liability, and a corresponding cumulative increase in retained earnings, of approximately $2,512,000 on the Company’s balance sheet as of September 30, 2022.”

Alico stock closed at $25.05 per Share on December 14, 2022, after falling by $2.64 per shares (9.53%).

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.

For more information on the Alico class action go to: https://bespc.com/cases/ALCO

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. The firm is nationally known and has offices in New York City, California, South Carolina. The firm represents investors, both individual and institutional, in complex commercial, securities, derivative, as well as other litigation in federal and state courts throughout the country. Visit the website for more information. www.bespc.com. Advertising for attorneys Past results are not indicative of future results.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com