LOS ANGELES (Legal Newsline) – A shareholder of a national yoga instruction company alleges the initial public offering price for shares was inflated.
Craig Cohen, individually and on behalf of all others similarly situated, filed a complaint on Dec. 27 in the U.S. District Court for the Central District of California against YogaWorks Inc., et al., over alleged violation of the Securities Exchange Act.
According to the complaint, between Aug. 10 and Aug. 16, 2017, Cohen and the class of individuals purchased defendants' initial public offering of stock amounting to 7.3 million shares at $5.50 per share.
The plaintiff alleges that the defendants issued untrue statements of material facts in materials presented to the public in support of the initial public offering. The plaintiffs allege these materials inflated the share price.
The suit states at the time of the filing, YogaWorks shares are trading at 44 cents, or 92 percent below the initial public offering price, and that stock has "consistently traded lower" the $5.50 price.
The plaintiff holds YogaWorks Inc., et al. responsible because the defendants allegedly failed in their duty by inducing public investment in YogaWorks by means of the materially untrue, inaccurate, misleading, and/or incomplete offering materials.
The plaintiff requests a trial by jury and seeks judgment for compensatory damages, costs, expenses incurred, and such and further relief as the court may deem just and proper. He is represented by Laurence M. Rosen of The Rosen Law Firm PA in Los Angeles, California.
U.S. District Court for the Central District of California case number 2:18-cv-10696-CJC-SK