Shareholder Investigations
Law firms investigate five companies after sharp share declines trigger investor scrutiny.
Anonymous
Law firms are investigating potential securities-law claims involving five companies after announcements or reports triggered sharp share declines. Endava is under scrutiny over its accounting treatment of customer and supplier agreements after its CFO was placed on leave pending an outside-counsel investigation; its shares fell about 12.2% in after-hours trading. NuScale’s stock dropped 15.67% after UBS downgraded it, citing competition, a long construction timeline, a lack of firm customer commitments, and significant projected cash burn. Cellectis shares plunged 40.97% after it said it would focus on in vivo gene-editing therapies and discontinue two CAR-T programs, citing limited cash and timing constraints. Wolfspeed fell 9.42% after reporting quarterly revenue and adjusted earnings well below analyst expectations, while Emergent BioSolutions dropped 29.58% after recording a large NARCAN-related impairment charge and lowering its full-year revenue outlook.
Key Points
1
Endava identified its CFO as Mark Thurston and said he was placed on administrative leave while independent outside counsel investigated accounting treatment of certain customer and supplier agreements and related matters.
2
UBS cut NuScale’s price target from $10 to $6 alongside its downgrade, and said the company could see $700 million in negative free cash flow from 2026 through 2028; it also cited stalled progress on the RoPower project in Romania and the TVA partnership.
3
Cellectis named the discontinued CAR-T programs as lasme-cel and eti-cel. Chief Medical Officer Adrian Kilcoyne said the company could not finance them given its timelines and limited cash resources.
4
Wolfspeed’s fourth-quarter revenue was $149.6 million, versus analysts’ $223.55 million consensus estimate, and its adjusted loss was $2.26 per share, compared with an expected loss of $0.52.
5
Emergent reported a $191.3 million non-cash impairment on its NARCAN asset group and a $180.2 million GAAP net loss, while cutting full-year revenue guidance by about 10.8% at the midpoint. Management cited increased competition as affecting both its near- to medium-term outlook and the asset group’s book value.
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