The Bear Cave #136
New Activist Reports, Recent Resignations, and Tweets of the Week
Welcome to The Bear Cave — your weekly source of short-seller news! If you are new, you can join here. Please hit the heart button if you like today’s newsletter and reply with any feedback.
New Activist Reports
There were no new activist reports this week. However, Quintessential Capital Management tweeted that recent trading activity in Cassava Sciences (NASDAQ: SAVA — $1.68 billion) “looks like a textbook case of market manipulation.”
Earlier in the week social media speculation spread in response to a purported FOIA request that suggested there was a “case closing recommendation” regarding an SEC inquiry into the company. The company later filed an 8-K stating,
“As of September 22, 2022, the Company has not received any ‘termination letter’ or the like from any government agency regarding any confidential requests for corporate information and documents. The Company is unable to establish the legitimacy of communications circulating on mass media, or elsewhere, purportedly sent from one such government agency following a request for public access to private records made under the Freedom of Information Act. The Company expressly disclaims any obligation to respond to any reports or rumors related to the topic of FOIA.”
Quintessential Capital previously alleged that “Cassava’s former Senior Clinical Research Associate is a convicted felon with a record in fraud and theft [and] Cassava’s prominent clinical research site is co-owned by a former escort, stripper and crack addict with a criminal record for consumption and possession of cocaine.”
The company’s stock was up 38% this week.
Recent Resignations
Notable executive departures disclosed in the past week include:
CFO of Daseke Inc (NASDAQ: DSKE — $309 million) “stepped down at this time as a result of familial obligations that necessitated a move” after two and a half years. The company has had five different CEOs and five different CFOs in the last five years and is down ~50% since its February 2017 SPAC merger.
CFO of Upwork (NASDAQ: UPWK — $1.79 billion) “entered into a transition agreement” after two and a half years. The company’s prior CFO also departed after less than three years.
CEO and CFO of Bird Global (NYSE: BRDS — $79 million) both departed after a little over four years. The company is down ~97% since its November 2021 SPAC merger.
Principal Accounting Officer of Netflix (NASDAQ: NFLX — $101 billion) resigned after just three months “due to a personal decision.” Netflix stock has nosedived ~60% this year.
Chief Operating Officer of Beyond Meat (NASDAQ: BYND — $999 million) was “suspended effective immediately” after allegedly biting part of another man’s nose off in a road rage incident. The company’s Chief Supply Chain Officer also resigned this week after ten months “to pursue another opportunity” and the stock is down ~75% since its May 2019 IPO.
Principal Accounting Officer of ICF International Inc (NASDAQ: ICFI — $2.03 billion) is resigning after two years “to take a senior position at another company.” The company’s CFO also departed in February after two years “to pursue new opportunities.” ICF International is audited by Grant Thornton LLP.
Chief Medical Officer of Zentalis Pharmaceuticals (NASDAQ: ZNTL — $1.18 billion) was replaced after four years. The company’s Chief Legal Officer departed in July after two years and the company’s CEO resigned in May. The company is down ~10% since its April 2020 IPO.
Data for this section is provided by VerityData from VerityPlatform.com
What to Read
“Nikola’s Milton Was ‘Hyper-Focused’ on Company’s Stock Price, CFO Tells Jury” (Bloomberg)
“Nikola Corp.’s Trevor Milton was so ‘hyper-focused’ on the company’s stock price that when the shares fell $5 on their first day of trading in June 2020, he thought something was wrong with the Nasdaq, jurors at his criminal fraud trial were told.”
“Boeing to Pay $200 Million to Settle SEC Investigation Related to 737 MAX Crashes” (WSJ)
“Dennis Muilenburg, Boeing’s former CEO, agreed to pay $1 million to settle the SEC’s claims, the agency said on Thursday…‘In times of crisis and tragedy, it is especially important that public companies and executives provide full, fair and truthful disclosures to the markets,’ SEC Chairman Gary Gensler said. He said Boeing and Mr. Muilenburg ‘failed in this most basic obligation.’”
“SEC Charges Compass Minerals for Misleading Investors about Its Operations at World’s Largest Underground Salt Mine” (SEC)
“The Securities and Exchange Commission today announced settled charges against Compass Minerals International for misleading investors about a technology upgrade that the company claimed would reduce costs at its most significant mine, but in reality, had increased costs, and for failing to properly assess whether to disclose the financial risks created by the company’s excessive discharge of mercury in Brazil. Compass is ordered to pay $12 million to settle the charges.”
Tweets of the Week
Until next week,
The Bear Cave