Bragar Eagel & Squire, P.C. Is Investigating Provident, Inspirato, and Welltower and Encourages Investors to Contact the Firm
NEW YORK, Feb. 03, 2023 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Provident Bancorp, Inc. (NASDAQ: PVBC), Inspirato Incorporated (NASDAQ: ISPO), and Welltower Inc. (NYSE: WELL). 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.
Provident Bancorp, Inc. (NASDAQ: PVBC)
On November 15, 2022, after the market closed, Provident announced in two filings with the U.S. Securities and Exchange Commission that it was delaying the issuance of its financial statements and quarterly report on Form 10-Q for the quarter ended September 30, 2022. Additionally, Provident said “it currently estimates that it will report a net loss of approximately $27.5 million for the quarter ended September 30, 2022, compared to net income of $5.1 million for the quarter ended September 30, 2021” and that “[t]he Company is still evaluating the actual level of losses due to the recent decline in the cryptocurrency mining industry, and such losses may exceed this estimate.”
On this news, Provident’s stock price fell $2.20 per share, or 21.78%, to close at $7.90 per share on November 16, 2022.
For more information on the Provident investigation go to: https://bespc.com/cases/PVBC
Inspirato Incorporated (NASDAQ: ISPO)
On November 14, 2022, Inspirato disclosed in a filing with the U.S. Securities and Exchange Commission (“SEC”) that “[o]n November 8, 2022, the Audit Committee (the ‘Audit Committee’) of the Board of Directors of Inspirato Incorporated (the ‘Company’) concluded, after discussion with the Company’s management, that the Company’s unaudited condensed consolidated financial statements as of and for the quarterly periods ended March 31, 2022 and June 30, 2022 (collectively, the ‘Non-Reliance Periods’) included in the Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the ‘SEC’) for the Non-Reliance Periods, should no longer be relied upon.
This is due to the incorrect application of Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (‘ASC 842’) with respect to the assessment of right-of-use assets and liabilities, resulting in an understatement of both right-of-use assets and total lease liabilities of approximately 9% for each of the Non-Reliance Periods resulting in an understatement of total assets and total liabilities by approximately 5% for each of the Non-Reliance periods, and due to property-related and other expenses being under accrued in the first quarter, and over accrued in the second quarter, resulting in cost of revenue being understated by approximately 1% and overstated by approximately 5% in the first and second quarter, respectively. Similarly, any previously issued or filed reports, press releases, earnings releases, and investor presentations or other communications describing the Company’s condensed consolidated unaudited financial statements and other related financial information covering the Non-Reliance Periods should no longer be relied upon.”
On this news, Inspirato’s stock price fell $0.27 per share, or 11.89%, to close at $2.00 per share on November 14, 2022.
Then, on November 23, 2022, Inspirato disclosed receipt of “a notice (the ‘Notice’) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (‘Nasdaq’) notifying the Company that it is not in compliance with the periodic filing requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) (the ‘Rule’) as a result of its failure to file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 (the ‘Third Quarter Report’) with the Securities and Exchange Commission (the ‘SEC’) by the required due date. The Notice stated that, under Nasdaq rules, the Company has 60 calendar days, or until January 17, 2023, to submit a plan to regain compliance with Nasdaq’s continued listing requirements.”
On this news, Inspirato’s stock price fell $0.06 per share, or 3.21%, to close at $1.81 per share on November 25, 2022.
For more information on the Inspirato investigation go to: https://bespc.com/cases/ISPO
Welltower Inc. (NYSE: WELL)
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Welltower is the subject of a report issued by Hindenburg Research on December 7, 2022. The report, titled, “Welltower: Exposing The Shell Game,” claims that the Company transferred the management of underperforming facilities to an undisclosed related party. According to the report, the new partner firm Integra “seems to barely exist. The entity was registered 6 months ago, according to Delaware corporate records. Its website was registered on the same day.” The report alleges that, “Integra’s CEO, 29-year-old David Gefner, appears to have no background in the skilled nursing space at all. Integra has no employees on LinkedIn except for Gefner, who claims to have worked at the 6-month-old entity for 11 months.”
Based on this report, shares of Welltower have dropped by more than 5% in intraday trading on the same day.
For more information on the Welltower investigation go to: https://bespc.com/cases/Well
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.