Hagens Berman Investigates Multiple Companies After Fraud Allegations Trigger Major Stock Crashes

2025-12-17 companies

New York, Wednesday, 17 December 2025.
Legal scrutiny intensifies as Rezolute shares plummet 90% and Stride faces “ghost student” fraud allegations, prompting urgent calls for investors to submit claims before January deadlines.

Biotech Volatility: The Rezolute Clinical Failure

The most precipitous decline among the scrutinized firms involves Rezolute, Inc. (RZLT), which saw its market valuation evaporate almost entirely in a single trading session. On December 11, 2025, Rezolute shares crashed 90% following the announcement that its Phase 3 sunRIZE trial for the lead asset, ersodetug, failed to meet both primary and secondary endpoints [2][6]. The drug, intended to treat hypoglycemia caused by hyperinsulinism, did not demonstrate a statistically significant reduction in hypoglycemia events compared to a placebo [2]. This clinical setback triggered an immediate reevaluation by market analysts; one analyst downgraded the stock from outperform to neutral and slashed the price target from $12 to $1, representing a projected value decrease of -91.667% [2][7]. Hagens Berman is now investigating the extent to which the company may have misled investors regarding the drug’s efficacy and commercial prospects prior to the data release [2].

Systemic Fraud Allegations at Stride

In the education technology sector, Stride, Inc. (LRN) is facing severe allegations regarding its operational integrity. The company’s stock plummeted 54% in a single day after disclosures surfaced regarding a “Ghost Student” scheme used to allegedly inflate enrollment figures [4]. The investigation highlights a dual failure: the manipulation of student-to-teacher ratios and a concealed technology platform upgrade failure that blocked access for 10,000 to 15,000 students [4]. These operational deficiencies had immediate financial repercussions, forcing the company to revise its sales growth forecast down from 19% to just 5% [4]. Hagens Berman partner Reed Kathrein described the conduct as “egregious,” noting that the inflated metrics were maintained just before the revelation of foreseeable technological failures [4].

IPO Disclosures and Contract Terminations

Newly public companies are also under the microscope for alleged misrepresentations in their offering documents. StubHub (STUB) is facing a class action lawsuit related to its September 2025 IPO, with allegations that the company failed to disclose adverse trends in vendor payment timings [3]. These undisclosed factors reportedly led to a severe liquidity crunch, resulting in a 143% decline in Free Cash Flow (FCF) for Q3 2025, which fell to a negative $4.6 million [3]. Similarly, Fermi Inc. (FRMI) experienced a sharp 33% decline on December 12, 2025, after a key tenant terminated a $150 million agreement for Project Matador [5]. The termination occurred just one day after Fermi had touted the agreement’s execution, leaving the stock trading nearly 52% below its October 2025 IPO price [5].

Regulatory Scrutiny and Investor Deadlines

The scope of Hagens Berman’s investigations extends to regulatory compliance and product launches in the healthcare sector. Telix Pharmaceuticals (TLX) suffered a 21% stock drop following news of an SEC subpoena regarding its prostate cancer therapeutic candidates and an FDA Complete Response Letter citing manufacturing deficiencies [1]. Meanwhile, Inspire Medical Systems (INSP) saw its stock fall by $42.04 per share—a 32.4% decline—after allegedly concealing Medicare billing software failures and an inventory glut of its previous generation device [8]. Investors seeking to serve as lead plaintiffs in these class actions face tight deadlines in early 2026: January 5 for Inspire Medical [8], January 9 for Telix [1], January 12 for Stride [4], and January 23 for StubHub [3].

Sources

Securities Litigation Class Action