NEW YORK, Jan. 29, 2023 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Fox Corporation FOX FOXA))), DLocal Ltd DLO, FTX Tokens FTT, and Credit Acceptance Corporation CACC. Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
Fox Corporation FOX FOXA)))
In November and December of 2020, Fox News broadcasted reports stating that the U.S. election was rigged. Fox News specifically called out Smartmatic and Dominion Voting Systems, voting technology and software companies, for their alleged involvement in rigging the election. Both companies have sued Fox for defamation and other claims based on defendants’ actions. The judges in both cases have upheld the lawsuits by overruling defendants’ motions to dismiss, finding that Smartmatic and Dominion sufficiently pleaded facts to support their claims of defamation.
In ruling in favor of Dominion, Delaware Superior Court Judge Eric M. Davis found Dominion had shown that the Murdochs, Fox’s most senior executives, may have been on notice that the conspiracy theory that rigged voting machines tilted the vote was false but let Fox News broadcast it anyway. Dominion cited in its suit a report that Rupert Murdoch spoke with Trump a few days after the election “and informed him that he had lost,” the judge noted.
“These allegations support a reasonable inference that Rupert and Lachlan Murdoch either knew Dominion had not manipulated the election or at least recklessly disregarded the truth when they allegedly caused Fox News to propagate its claims about Dominion,” said Davis.
These lawsuits, which seek billions of dollars, punitive damages and other relief, can deplete Fox’s assets, harm Fox’s reputation, and prove detrimental to Fox shareholders.
For more information on the Fox investigation go to: https://bespc.com/cases/FOX
DLocal Ltd DLO
On November 16, 2022, Muddy Waters Capital LLC (“Muddy Waters”) published a research report concluding that DLocal “is likely a fraud.” Muddy Waters alleges that DLocal has repeated disclosures about its Total Processing Volume and accounts receivable “that flatly contradict one another” and that there is “a contradictory discrepancy between two key subsidiaries’ accounts payable and accounts receivable.” Muddy Waters also alleges that DLocal engaged in multiple misrepresentations to disguise the timing and the source of funding for an insider option exercise.
On this news, DLocal’s share price fell $10.76, or more than 50%, to close at $10.46 per share on November 16, 2022, thereby injuring investors.
For more information on the Twist investigation go to: https://bespc.com/cases/DLO
FTX Tokens FTT
On November 2, 2022, Coindesk published an article entitled “Divisions in Sam Bankman-Fried’s Crypto Empire Blur on His Trading Titan Alameda’s Balance Sheet” which revealed alleged issues with Alameda Research and FTX’s close relationship and Alameda Research’s large FTT holdings.
Then, November 6, 2022, Binance’s Chief Executive Officer, Changpeng Zhao announced on Twitter that Binance would liquidate its FTT holdings “[d]ue to recent revelations that have come to light[.]”
On November 8, 2022, The Wall Street Journal published an article entitled “Binance’s Deal for Rival FTX Marks Power Shift Amid Crypto Turmoil” which discussed Binance’s non-binding agreement to purchase FTX amid FTX’s “sudden liquidity crunch”.
Then, on November 9, 2022, The Wall Street Journal published an article entitled “Binance Walks Away From Deal to Rescue FTX” which discussed the deal falling through which left FTX with “a shortfall of up to $8 billion, according to people familiar with the matter.”
On November 10, 2022, The Wall Street Journal published an article entitled “SEC, DOJ Investigating Crypto Platform FTX” which discussed the newly known investigations.
On the above news, the price of FTT has fallen sharply on unusually heavy trading volume.
For more information on the FTX investigation go to: https://bespc.com/cases/FTT
Credit Acceptance Corporation CACC
On January 4, 2023, information was released regarding the U.S. Consumer Financial Protection Bureau and the New York State Office of the Attorney General filing a joint lawsuit against the company. The CFPB stated Credit Acceptance violated New York usury laws on interest-rate limits and other consumers and investor-protection laws.
New York’s attorney general seeks to stop Credit Acceptance’s abusive and misleading practices, reform or rescind existing loan agreements, provide compensation to impacted New Yorkers, and secure penalties and damages due to this unacceptable and illegal behavior.
Following this news, on January 4, 2023, the company’s shares closed down 11.61%.
For more information on the Credit Acceptance investigation go to: https://bespc.com/cases/CACC
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.
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
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