Herbalife (
HLF,
Stock Forum) has been brought under fire by
Glancy Binkow & Goldberg LLP for playing a loosely legal game with its global network of independent-distributor “members”. These members are required to purchase the company’s weight loss products at wholesale value and re-sell said products at market rate to customers and other distributors. Problem is, Herbalife is being accused of issuing false and misleading statements or failing to disclose that the company’s operations were based on a pyramid scheme where distributors generate their revenue through recruiting other distributors, rather than selling the products to the public. Can you say Amway? Herbalife is also accused of deceptive trading practices and unduly pressuring its members to buy more to resell to its distributors.
Allied Nevada Gold (
TSX:ANV,
Stock Forum), a Reno Nevada-based gold producer engaged in the mining, development and exploration of Nevada-based properties, put its foot in it when the company was accused of publishing false and misleading statements in relation to the company’s financial performance and future prospects and also of failing to disclose materially adverse factors concerning the systemic deficiencies at the Lewis leach pad and that said deficiencies were adversely affecting its production costs and cash flows.
During trading today the company bled out 90% - that’s healthy…
Imperva (
NYSE:IMPV,
Stock Forum), a Redwood Shores California-based developer and marketer of data security solutions for enterprise data centres, felt the heat over its own data following the release of its preliminary Q1 2014 financial results where the company undershot its expected revenue guidance by approximately $5.0 million and reported an expected $9.5 million to $10.5 million non-GAAP operating loss for the quarter. The Law Offices of Howard G. Smith reminded the public of the company’s alleged wrong-doing today and also reminded concerned investors that the deadline to file a motion to be appointed lead plaintiff in the shareholder lawsuit filed in the United States District Court for the Northern District of California.
ViXS Systems (
TSX:VXS,
Stock Forum), a Toronto-based multimedia solutions innovator and provider of wireless 4K UltraHD broadcast solutions
returned with swords drawn as it filed a complaint with the U.S. International Trade Commission against Entropic Communications (
NASDAQ:ENTR,
Stock Forum) citing that Entropic had engaged in unfair business practices by the importation, sale for importation and sale after importation on various components that infringe on a list of company patents already registered in the United States. Both companies are already raw from a separate round of litigation with counterclaims that began in May 2013 when Entropic accused the company of patent infringement in a San Diego federal court.
ON THE SCAM FRONT
Lloyds International S.A., last known to operate at Av. Paulista 2202, 6th Floor, Brazil, has been playing with the phones again and has been soliciting British Columbian investors, purporting to be a listed foreign exchange offering investment opportunities to investors if they opened Lloyds’ accounts and used the company as their trading representative. In short, the company may say they are a foreign exchange company, but they are the “from-your-hand-to-mine” variety. According to the BC Securities Commission, Lloyds is not registered in BC to trade in, or advise on securities or exchange contracts.
HR Investment Group (a.k.a. High Returns Investment Group) – insert laugh here – has been especially naughty by popping up a website and telling British Columbia residents that the company provides returns of 10 times the invested amount in twenty days. Are they selling crack? The BC Securities Commission flatly stated that the promised returns are not realistic and cautions residents against sending any funds to HR Investment or any other unregistered person promising drug lord profits on your investment.
German company,
Karatbars International GmbH, is linked to an investment program that authorities in Quebec have found a little off-putting. In the company’s “Affiliate” program, investors can make Internet-based purchases through Karatbars plans and they are encouraged to recruit two other “Affiliates” each and so on…sound familiar? Affiliates are lured into the program by the potential of earning large payouts, mainly through a percentage of amounts collected from the Karatbars plans and gold products purchased by referrals. Authorities reminded Quebec residents that due diligence is the phrase of the day and not to make any pot-of-gold investments, online or off, without consulting the register at the AMF website or at least checking with the AMF Information Centre.