SHAREHOLDER ALERT: Law firm Pomerantz reminds shareholders who have suffered losses on their investment in Clarivate Plc of the class action and upcoming deadline – CLVT; CLVT-PA

NEW YORK, NY/ACCESSWIRE/February 26, 2022/ Pomerantz LLP announces that a class action lawsuit has been filed against Clarivate Plc (“Clarivate” or the “Company”) (NYSE: CLVT, CLVT-PA)) and certain of its officers. The class action, filed in the United States District Court for the Eastern District of New York and registered as 22-cv-00394, is on behalf of a class consisting of all persons and entities other than defendants. who purchased or otherwise acquired Clarivate securities between February 26, 2021 and December 27, 2021, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of federal securities and to seek remedies under Sections 10(b) and 20(a) ) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder , against the Company and certain of its senior executives.

If you are a shareholder who purchased or otherwise acquired securities of Clarivate during the class period, you have until March 25, 2022 to ask the court to name you as the lead plaintiff in the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those making inquiries by email are encouraged to include their mailing address, phone number and number of shares purchased.

[Click here for information about joining the class action]

Clarivate is an information and analytical services company.

On October 1, 2020, the Company acquired 100% of the assets, liabilities and equity interests of CPA Global, an intellectual property software and technology services company.

Before and after its acquisition of CPA Global, Clarivate assured investors of the fundamental effectiveness of its financial controls and procedures. For example, even after Clarivate disclosed in April 2021 that it had a material weakness in its financial controls related to the accounting for certain warrants issued as part of a business combination in 2019, the Company specifically limits the scope of this material weakness to its accounting for warrants in issue, while assuring investors that the rest of its controls and procedures were effective.

The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Clarivate maintained flawed disclosure controls and procedures due to a material weakness in its internal control over financial reports; (ii) the foregoing material deficiency was not limited to the manner in which the Company accounted for Warrants; (iii) as a result, Clarivate failed to properly account for a stock plan included in its acquisition of CPA Global; (iv) as a result, the Company was reasonably likely to restate one or more of its previously issued financial statements following its acquisition of CPA Global; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.

On December 27, 2021, Clarivate disclosed in a filing with the United States Securities and Exchange Commission (“SEC”) that “[o]n December 22, 2021, Clarivate . . . concluded that the financial statements previously issued as at and for the fiscal year ended December 31, 2020 and the quarterly periods ended March 31, 2021, June 30, 2021 and September 30, 2021 should no longer be relied upon due to an error in these financial statements[.]Specifically, Clarivate reported that “[t]The error relates to the treatment under United States generally accepted accounting principles (‘GAAP’) relating to a share plan included in the CPA Global business combination which was completed on October 1, 2020 (the ‘transaction Global CPA’)[,]” and that “[i]In the relevant financial statements, certain awards made by CPA Global under its stock ownership plan were incorrectly included as part of the acquisition accounting for the CPA Global transaction. »

Later that same day, one hour before the close of market trading hours, StreetInsider.com published an article on Clarivate titled “Clarivate Plc (CLVT) PT Lowered to $29 at Stifel on Accounting Error”. This article reported, in relevant part, that “Stifel analyst Shlomo Rosenbaum lowered the price target on Clarivate…to $29.00 (from $32.00)” following the disclosure by the company that “it discovered an accounting error related to stock awards that CPA Global had issued under its stock plan.” This article quoted the Stifel analyst, who commented, in relevant part, that “[t]The timing of this discovery is poor, less than a month after the departure of the previous CFO, although we are told the items are unrelated, and this error was discovered last week[,]” and that “[t]his error should have no impact on revenue, Adjusted EBITDA or Adjusted FCF [free cash flow]but this is likely to impact EBITDA and GAAP earnings, as well as reported FCF.”

Following the SEC filing of Clarivate and the StreetInsider.com article, Clarivate’s common stock price fell $0.16 per share, or 0.65%, to close at $24.58 per share on December 27, 2021. As the market continued to digest the filing with the SEC and StreetInsider.com article, Clarivate’s common stock price fell an additional $1.70 per share, or 6.92%, to close at $22.88 per share on December 28, 2021, a total decline of 1.86 $ per share, or 7.52%, over two consecutive trading days.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. To see www.pomlaw.com.

THE SOURCE: Pomerantz LLP

See the source version on accesswire.com:
https://www.accesswire.com/690562/SHAREHOLDER-ALERT-Pomerantz-Law-Firm-Reminds-Shareholders-with-Losses-on-their-Investment-in-Clarivate-Plc-of-Class-Action-Lawsuit- and-due-upcoming-CLVT-CLVT-PA

Comments are closed.