Clarification Deadline Alert | 2022-02-21 | Press Releases
Securities litigation partner James (Josh) Wilson encourages investors who have suffered losses greater than $100,000 in clarification to contact him directly to discuss their options
New York, New York–(Newsfile Corp. – February 21, 2022) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Clarivate Plc (“Clarivate” or the “Company “) (NYSE: CLVT) (NYSE: CLVT.PA) and reminds investors of the March 25, 2022 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit that has been filed against the Company.
If you suffered losses greater than $100,000 investing in shares or options of Clarivate between February 26, 2021 and December 27, 2021 and want to discuss your legal rights, call partner Faruqi & Faruqi Josh Wilson directly at 877-247-4292 Where 212-983-9330 (ext. 1310). You can also click here for more information: www.faruqilaw.com/CLVT.
There is no cost or obligation for you.
Faruqi & Faruqi is a leading national minority and women-owned securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the company and its officers violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1 ) Clarivate maintained flawed disclosure controls and procedures as a result of a weakness in its internal control over financial reporting; (2) the foregoing material weakness was not limited to the manner in which the Company accounted for Warrants; (3) as a result, Clarivate did not properly account for a stock plan included in its acquisition of CPA Global; (4) as a result, the Company was reasonably likely to restate one or more of its previously issued financial statements following its acquisition of CPA Global; and (5) therefore, the Company’s public statements were materially false and misleading at all material times.
On December 27, 2021, Clarivate disclosed in a filing with the United States Securities and Exchange Commission (“SEC”) that “[o]n December 22, 2021, Clarivate . . . concluded that the financial statements previously issued as at and for the fiscal year ended December 31, 2020 and the quarterly periods ended March 31, 2021, June 30, 2021 and September 30, 2021 should no longer be relied upon due to an error in these financial statements[.]Specifically, Clarivate reported that “[t]The error relates to the treatment under United States generally accepted accounting principles (‘GAAP’) relating to a share plan included in the CPA Global business combination which was completed on October 1, 2020 (the ‘transaction Global CPA’)[,]” and that “[i]In the relevant financial statements, certain awards made by CPA Global under its stock ownership plan were incorrectly included as part of the acquisition accounting for the CPA Global transaction. »
Later that same day, one hour before the close of market trading hours, StreetInsider.com published an article on Clarivate titled “Clarivate Plc (CLVT) PT lowered to $29 at Stifel following accounting error”. This article reported, in relevant part, that “Stifel analyst Shlomo Rosenbaum lowered the price target on Clarivate…to $29.00 (from $32.00)” following the disclosure by the company that “it discovered an accounting error related to stock awards that CPA Global had issued under its stock plan.” This article quoted the Stifel analyst, who commented, in relevant part, that “[t]The timing of this discovery is poor, less than a month after the departure of the previous CFO, although we are told the items are unrelated, and this error was discovered last week[,]” and that “[t]his error should have no impact on revenue, Adjusted EBITDA or Adjusted FCF [free cash flow]but this is likely to impact EBITDA and GAAP earnings, as well as reported FCF.”
Following the SEC filing of Clarivate and the StreetInsider.com article, Clarivate’s common stock price fell $0.16 per share, or 0.65%, to close at $24.58 per share on Dec. 27, 2021. As the market continued to digest the filing with the SEC and StreetInsider.com article, Clarivate’s common stock price fell an additional $1.70 per share, or 6.92%, to close at $22.88 per share on December 28, 2021, a total decline of 1.86 $ per share, or 7.52%, over two consecutive trading days.
The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of the class members directing and supervising the litigation on behalf of the putative class. Any putative class member may ask the Court to serve as lead plaintiff through counsel of their choosing, or may choose to do nothing and remain an absent class member. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Clarivate’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.
Lawyer advertisement. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated confidentially.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/114334