NEW YORK, April 28, 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 BurgerFi International, Inc. (NASDAQ: BFI, BFIIW), Hesai Group (NASDAQ: HSAI), and Plug Power Inc. (NASDAQ: PLUG). 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.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW)
Class Period: December 17, 2020 - November 15, 2022
Lead Plaintiff Deadline: June 5, 2023
BurgerFi previously operated as a blank-check company, also referred to as a special purpose acquisition company (“SPAC”), which is a development stage company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business transaction with one or more operating businesses or entities.
On December 17, 2020, the Company announced that it had completed a business combination with BurgerFi International, LLC (“Legacy BurgerFi”), a private Delaware limited liability company touted as “one of the nation’s fastest-growing better burger concepts” (the “Business Combination”). As a result of the Business Combination, among other things, the Company purchased 100% of the membership interests of Legacy BurgerFi, resulting in Legacy BurgerFi becoming a wholly owned subsidiary of the Company, and the Company changed its name to “BurgerFi International, Inc.”
Following the Business Combination, the Company, together with its subsidiaries, has owned and franchised fast-casual and premium-casual dining restaurants.
On November 4, 2021, the Company completed its acquisition of Anthony’s Coal Fired Pizza & Wings (“Anthony’s”) for $156.6 million (the “Anthony’s Acquisition”). Defendant Ophir Sternberg (“Sternberg”), Executive Chairman of the Company, touted the Anthony’s Acquisition as “a significant step forward in BurgerFi’s ongoing growth strategy and transition into a premium multibrand platform.”
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company had overstated the effectiveness of its acquisition and growth strategies; (ii) the Company had misrepresented to investors the purported benefits of Anthony’s Acquisition and its post-Business Combination business and financial prospects; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 11, 2022, during pre-market hours, BurgerFi issued a press release announcing the Company’s second quarter (“Q2”) 2022 results. Among other results, that press release reported Q2 revenue of $45.3 million, missing consensus estimates by $2.28 million. The Company also disclosed that “[n]et loss in the second quarter was $60.4 million compared to a net income of $9.0 million in the year-ago quarter[,]” which “[wa]s primarily the result of goodwill impairment charges of $55.2 million in relation to BurgerFi and Anthony’s coupled with higher depreciation, amortization of intangibles, share-based compensation, interest expense resulting from the acquisition-related debt” (emphases in original).
On this news, BurgerFi’s stock price fell $0.10 per share, or 3.03%, to close at $3.20 per share on August 11, 2022.
Then, on November 16, 2022, during pre-market hours, BurgerFi issued a press release announcing the Company’s third quarter (“Q3”) 2022 results. Among other results, that press release reported Q3 revenue of $43.3 million, missing consensus estimates by $0.84 million, explaining that “[f]or the BurgerFi brand, same-store sales decreased 11% and 6% in corporate owned and franchised locations, respectively” (emphases in original).
On this news, BurgerFi’s stock price fell $0.24 per share, or 10.57%, to close at $2.03 per share on November 16, 2022.
For more information on the BurgerFi class action go to: https://bespc.com/cases/BFI
Hesai Group (NASDAQ: HSAI)
Class Period: In connection with Hesai Group’s February 2023 IPO
Lead Plaintiff Deadline: June 6, 2023
According to the lawsuit, the Registration Statement contained false and/or misleading statements and/or failed to disclose that: (1) Hesai Group’s gross margin decrease was caused by a lower in-house utilization rate; (2) Hesai Group’s gross margin was 30% for the fourth quarter—which was completed over a month before the date of the amended registration statement; and (3) as a result, defendants’ public statements were materially false and misleading at all relevant times and negligently prepared. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Hesai class action go to: https://bespc.com/cases/HSAI
Plug Power Inc. (NASDAQ: PLUG)
Class Period: August 9, 2022, - March 1, 2023
Lead Plaintiff Deadline: June 12, 2023
The Class Period begins on August 9, 2022, to coincide with the publication of Plug’s financial results for the second quarter of 2022, when Defendants assured investors that the Company had a “Strong Business Outlook” and touted a $15 billion sales funnel. Defendants also emphasized that the Company’s supply chain was strong—with the Company’s Chief Executive Officer stating that he did “not foresee supply chain issues this year”—and that Plug’s rapidly growing inventory was simply attributable to the substantial growth the Company would experience in the second half of 2022. Consistent with these representations, Defendants projected that the Company would generate 2022 revenue between $900 million and $925 million, representing approximately 80% year-over-year growth.
Just a few months later, on October 14, 2022, investors began to learn the truth about Plug’s prospects when the Company warned that full-year revenue could be 5% to 10% lower than previously projected. Defendants attributed the revenue revision to “some larger projects potentially being completed in 2023 instead of 2022 due to timing and broader supply chain issues.” On this news, the price of Plug common stock declined $1.20 per share, or more than 6%, from a close of $19.23 per share on October 13, 2022, to close at $18.03 per share on October 14, 2022.
About three weeks later, on November 8, 2022, the Company reported its financial results for the third quarter of 2022, reporting a decrease in gross margins and a further increase in inventory levels. On this news, the price of Plug common stock declined $0.20 per share, or more than 1%, from a close of $14.81 per share on November 8, 2022, to close at $14.61 per share on November 9, 2022.
On January 25, 2023, despite Defendants’ previous assurances that revenue growth would be at least 60% on a year-over-year basis, Plug revealed that it now expected to generate year-over-year revenue growth of just 45% to 50% in 2022. Defendants explained that this disappointing result “had to do with the fact that the new products came out a little slower than we hoped,” as Plug’s “[m]anufacturing had a few more issues than we hoped” and “added . . . complexity to supply chain.” Following this revelation, the price of Plug common stock declined $0.97 per share, or approximately 6%, from a close of $16.34 per share on January 25, 2023, to close at $15.37 per share on January 26, 2023.
Then, after the market closed on March 1, 2023, the Company announced its financial results for the fourth quarter and full year 2022, including full-year revenue growth of just 40% on a year-over-year basis—missing even the reduced guidance range provided just a few weeks prior. On this news, the price of Plug common stock declined $0.88 per share, or more than 6%, from a close of $14.21 per share on March 1, 2023, to close at $13.33 per share on March 2, 2023.
The Complaint 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 and operations. Specifically, Defendants misrepresented and/or failed to disclose that the Company was unable to effectively manage its supply chain and product manufacturing, resulting in reduced revenues and margins, increased inventory levels, and several large deals being delayed until at least 2023, among other issues. As a result, Defendants’ statements about the Company’s business, operations, prospects, and ability to effectively manage its supply chain and production lacked a reasonable basis.
For more information on the Plug class action go to: https://bespc.com/cases/PLUG
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.