MDRX - Bragar Eagel & Squire P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Holley Veradigm and Fisker and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, Dec. 30, 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 Holley Inc. (NYSE:HLLY), Veradigm Inc. ("Veradigm" or the "Company") (NASDAQ:MDRX), and Fisker Inc. (NYSE:FSR). 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.
Holley Inc. (NYSE:HLLY)
Class Period: July 21, 2021 - February 6, 2023
Lead Plaintiff Deadline: January 5, 2024
The Holley class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) as a result of Holley's extensive focus on its direct-to-consumer ("DTC") channel, Holley's critically important relationships with its resellers and distributors, whose business made up the vast majority of Holley's revenue, were suffering significant damage; (ii) Holley used discounting and other similar efforts to grow its DTC channel, which undermined the pricing discipline Holley historically had with its resellers and distributors, and further damaged Holley's relationship with its resellers and distributors; (iii) as a result of Holley's strained relationships with its resellers and distributors, those resellers and distributors were decreasing their purchases of Holley products, returning products already purchased at significant levels that were far above historical norms, and increasing their purchases of competitors' products; (iv) Holley's growing DTC channel could not offset the negative financial impact of Holley's increasingly strained relationships with its resellers and distributors and, as a result, Holley's critical relationship with resellers and distributors was deteriorating; (v) Holley had failed to successfully integrate and capture synergies from its numerous acquisitions, which left Holley with inefficient operations, excess costs, and inventory management problems; and (vi) Holly benefited from COVID-related stimulus money that temporarily boosted its sales and performance, and despite this unsustainable, temporary boost, defendants misled investors to believe the growth was sustainable and the result of persistent demand, and supportive of positive financial guidance.
On July 28, 2022, Holley announced preliminary financial results that missed expectations and slashed its full year 2022 outlook. On this news, the price of Holley stock fell more than 47% over two trading sessions.
Then, on November 14, 2022, Holley further announced disappointing financial results for third quarter 2022. On this news, the price of Holley stock fell nearly 7%.
Thereafter, on February 6, 2023, Holley announced that Chief Executive Officer and President Tom Tomlinson was retiring, effective immediately, and also resigning from Holley's Board of Directors. Also on February 6, 2023, Holley announced its preliminary fourth quarter 2022 and full year 2022 financial results, revealing that fourth quarter 2022 sales fell short of market estimates as well as adjusted EBITDA that new Holley Chief Financial Officer Jesse Weaver called "disappointing." On this news, the price of Holley stock fell more than 37% over two trading sessions.
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