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Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Robinhood, Reata Pharmaceuticals, Desktop Metal, and Chegg and Encourages Investors to Contact the Firm

NEW YORK, Jan. 17, 2022 (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 Robinhood Markets, Inc. (NASDAQ: HOOD), Reata Pharmaceuticals, Inc. (NASDAQ: RETA), Desktop Metal, Inc. (NYSE: DM), and Chegg, Inc. (NYSE: CHGG). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.

Robinhood Markets, Inc. (NASDAQ: HOOD)

Class Period: July 30, 2021 IPO

Lead Plaintiff Deadline: February 15, 2022

On July 30, 2021, Robinhood conducted its initial public offering (“IPO”), issuing 55 million shares priced at $38.00 per share. Then, on October 26, 2021, Robinhood announced its 2021 third-quarter financial results. Among other items, Robinhood reported third-quarter revenue that fell short of consensus estimates on crypto transaction revenue totaling only $51 million, a 78% plunge compared to the preceding quarter.

On this news, Robinhood’s stock price fell $4.13 per share, or 10.44%, to close at $35.44 per share on October 27, 2021.

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

Reata Pharmaceuticals, Inc. (NASDAQ: RETA)

Class Period: November 9, 2020 – December 8, 2021

Lead Plaintiff Deadline: February 18, 2022

On March 1, 2021, Reata announced that it had submitted its New Drug Application (“NDA”) to the U.S. Food and Drug Administration ("FDA") for bardoxolone as a treatment of chronic kidney disease (“CKD”) caused by Alport syndrome ("AS"). The Phase 3 CARDINAL study was purportedly designed to measure the efficacy and safety of bardoxolone. The primary endpoint for Year 2 was the change from baseline in estimated glomerular filtration rate (“eGFR”) after 100 weeks of treatment (end-of-treatment). The key secondary endpoint for Year 2 was the change from baseline in eGFR at Week 104 (four weeks after last dose in second year of treatment).

On December 6, 2021, the FDA released briefing documents in advance of an Advisory Committee meeting for the Company’s NDA for bardoxolone, stating that throughout the clinical development, the agency had repeatedly questioned the validity of Reata’s study design because bardoxolone’s pharmacodynamic effect on kidney function would make the results difficult to assess the effectiveness of the drug. Though the FDA agreed that Reata’s Phase 3 study met its endpoints, “the FDA review team d[id] not believe the submitted data demonstrate that bardoxolone is effective in slowing the loss of kidney function in patients with AS and reducing the risk of progression to kidney failure.”

On this news, the Company’s stock price fell $29.77, or 38%, to close at $48.92 per share on December 6, 2021, on unusually heavy trading volume.

Then, on December 8, 2021, the FDA’s Advisory Committee unanimously decided that bardoxolone was not effective based on the submitted data.

On this news, the Company’s stock price fell $25.31, or 46%, to close at $29.11 per share on December 9, 2021, on unusually heavy trading volume.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the FDA had raised concerns regarding the validity of the clinical study designed to measure the efficacy and safety of bardoxolone for the treatment of chronic kidney disease caused by Alport syndrome; (2) that, as a result, there was a material risk that Reata’s NDA would not be approved; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

For more information on the Reata Pharmaceuticals class action go to: https://bespc.com/cases/RETA

Desktop Metal, Inc. (NYSE: DM)

Class Period: March 15, 2021 – November 15, 2021

Lead Plaintiff Deadline: February 21, 2022

On February 16, 2021, the Company acquired EnvisionTEC, Inc. and certain of its affiliates (collectively, “EnvisionTEC”), a provider of volume production photopolymer 3D printing solutions for end use parts.

On November 8, 2021, after the market closed, Desktop Metal disclosed that it was conducting an internal investigation into certain matters, including “manufacturing and product compliance practices and procedures with respect to a subset of its photopolymer equipment and materials at its EnvisionTEC US LLC facility.” The Company also stated that the Chief Executive Officer of EnvisionTEC US LLC had resigned.

On this news, the Company’s stock fell $0.39, or 4%, to close at $8.81 per share on November 9, 2021.
 
Then, on November 15, 2021, after the market closed, the Company stated that it would notify the U.S. Food and Drug Administration (“FDA”) of “compliance issues with certain shipments of EnvisionTEC’s Flexcera dental resins and its PCA4000 curing box.”

On this news, the Company’s stock fell $1.19, or 15%, to close at $6.83 per share on November 16, 2021, on unusually heavy trading volume.

Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that there were deficiencies in EnvisionTEC’s manufacturing and product compliance practices and procedures; (2) that the foregoing deficiencies presented a material risk to the commercialization of EnvisionTEC’s products; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

For more information on the Desktop Metal class action go to: https://bespc.com/cases/DM

Chegg, Inc. (NYSE: CHGG)

Class Period: May 5, 2020 – November 1, 2021

Lead Plaintiff Deadline: February 21, 2022

The complaint charges Chegg, its Chief Executive Officer and Chief Financial Officer, and others with violations of the Securities Exchange Act of 1934. According to the complaint, the defendants made materially false and misleading statements and failed to disclose known adverse facts about Chegg's business, operations, and prospects, including that: (i) Chegg’s increase in subscribers, growth, and revenue had been a temporary effect of the COVID-19 pandemic that resulted in remote education for the vast majority of United States students and once the pandemic-related restrictions eased and students returned to campuses nationwide, Chegg's extraordinary growth trends would end; (ii) Chegg’s subscriber and revenue growth were largely due to the facilitation of remote education cheating an unstable business proposition rather than the strength of its business model or the acumen of its senior executives and directors; and (iii) as a result, the Company's current business metrics and financial prospects were not as strong as it had led the market to believe during the Class Period.

Following these disclosures, the Company’s stock price fell $30.64 per share, or 48.82%, to close at $32.12 per share on November 2, 2021.

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

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.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
[email protected]
www.bespc.com


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