NEW YORK, Aug. 05, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Cognyte Software Ltd. (NASDAQ: CGNT), Toronto-Dominion Bank (NYSE: TD), Cavco Industries, Inc. (NASDAQ: CVCO), and Discover Financial Services (NYSE: DFS). 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.
Cognyte Software Ltd. (NASDAQ: CGNT)
On April 5, 2022, Cognyte reported its fourth quarter 2021 financial results, including revenue of $125 million, which was about $3.5 million below the midpoint of the Company’s own guidance. Cognyte cited “lower conversions within its product pipeline,” along with supply chain issues. During the related conference call, Cognyte’s Chief Executive Officer stated that “a longer sales cycle [resulted] in the lower-than-expected bookings in Q4” and acknowledged that management “didn’t execute well.”
On this news, Cognyte’s stock fell $3.63, or 31.1%, to close at $8.03 per share on April 5, 2022, thereby injuring investors.
For more information on the Cognyte investigation go to: https://bespc.com/cases/CGNT
Toronto-Dominion Bank (NYSE: TD)
TD, a Toronto-based bank with 1,100 branches in the U.S., is seeking regulatory approval for the acquisition of Tennessee-based First Horizon.
On June 15, 2022, CNBC reported that “Lawmakers led by Sen. Elizabeth Warren asked a key regulator to block Toronto-Dominion Bank’s $13.4 billion acquisition of a regional U.S. bank because of allegations of customer abuse. In a letter sent Tuesday to the Office of the Comptroller of the Currency obtained exclusively by CNBC, Warren cited a May 4 report by Capitol Forum, a Washington-based investigative news outfit, that alleged that TD used tactics similar to those in the Wells Fargo fake accounts scandal.”
On this news, TD stock fell $3.12 per share, or 4.5%, to close at $66.10 per share on June 16, 2022.
For more information on the TD investigation go to: https://bespc.com/cases/TD
Cavco Industries, Inc. (NASDAQ: CVCO)
On November 8, 2018, Cavco revealed in an SEC filing that it had “received a subpoena from the SEC’s Division of Enforcement requesting certain documents relating to, among other items, trading in the stock of another public company.”
On this news, Cavco share prices fell $49.48 per share, or over 23%, to close at $165.20 per share on November 9, 2018.
On February 4, 2019, revealed that it had received requests for additional documents. Cavco further disclosed spending, and expecting to spend, millions of dollars on legal and insurance expenses in relation to the SEC’s subpoenas and the Company’s independent investigation into the matter.
On this news, Cavco share prices fell $26.92 per share or about 16.7% to close at $134.37 per share on February 5, 2019.
On September 2, 2021, the SEC filed a complaint against Cavco, former CEO Joseph Stegmayer, and former CFO and Chief Compliance Officer Daniel Urness. The SEC complaint alleged that Stegmayer and Urness caused Cavco to purchase shares of publicly traded companies on material non-public information.
On this news, Cavco share prices fell $6.59 per share, or about 2.5%, to close at $252.48 per share on September 3, 2021.
For more information on the Cavco investigation go to: https://bespc.com/cases/CVCO
Discover Financial Services (NYSE: DFS)
Discover is a digital banking and payment services company offering customers credit card loans, private student loans, personal loans, home loans, and deposit products.
In 2015, the U.S. Consumer Financial Protection Bureau (“CFPB”) issued a consent order against Discover based on the CFPB’s finding that Discover engaged in illegal debt collection practices and that Discover misstated the minimum amounts due on billing statements as well as tax information consumers needed to get federal income tax benefits. In 2020, the CFPB issued a consent order against Discover based on its findings that Discover violated the prior CFPB order, the Electronic Fund Transfer Act, and the Consumer Financial Protection Act of 2010.
On July 20, 2022, Discover revealed that it was “suspending until further notice its existing share repurchase program because of an internal investigation relating to its student loan servicing practices and related compliance matters.” Discover further disclosed that “[t]he investigation is ongoing and is being conducted by a board-appointed independent special committee.”
On this news, the price of Discover stock fell by $8.49 per share, or 7.8%%, to close at $100.00
per share on July 21, 2022.
For more information on the Discover investigation go to: https://bespc.com/cases/DFS
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.
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