The Bear Cave #292
New Activist Reports, Recent Resignations, and Tweets of the Week
Welcome to The Bear Cave! Our last premium articles were “Problems at Gogo (GOGO)” and “Problems at DraftKings (DKNG)” and our next special investigation comes out Thursday, October 2.
New Activist Reports
Hunterbrook Media published on DexCom (NASDAQ: DXCM — $26.5 billion), a company that makes glucose monitoring systems for diabetes management. Hunterbrook highlighted problems with the company’s G7 continuous glucose monitor and alleged that it gives inaccurate readings and contributed to patient deaths. Hunterbrook alleged the issues are widespread, citing interviews with more than a dozen G7 users who said “they felt betrayed by a technology that had once been life-changing” and a Facebook group about G7 problems that has grown “to more than 58,000 members in just over one year.” Hunterbrook also interviewed endocrinologists who found “disproportionate sensor inaccuracies, repeated device failures, and connectivity issues” and, as a result, “have stopped putting patients on the G7 altogether.” Hunterbrook said, in part,
“Multiple former employees told Hunterbrook the G7’s problems are symptomatic of a deeper struggle: an innovative company floundering to keep alive a growth story demanded by Wall Street amid a series of headwinds.”
DexCom stock fell ~12% in the two days following Hunterbrook’s investigation.
Kerrisdale Capital published on CoreWeave (NASDAQ: CRWV — $61.0 billion), an AI cloud computing company. Kerrisdale called the company “a levered GPU rental shop with lousy economics” and said “its anchor customers are signing bigger deals elsewhere because it has no moat amid rising competition.”
Spruce Point Capital published on Uranium Energy Corp (NYSE: UEC — $5.49 billion), a U.S.-based uranium production and exploration company. Spruce Point called the company’s CEO, Amir Adnani, “a highly promotional CEO with little proof that he can run a fully operational and integrated ‘low cost’ uranium business empire.” Spruce Point also alleged the company has legacy ties to unscrupulous actors and is “trading at 42x highly questionable 2026E revenue estimates.”
HitHawk Research published on TrustPilot (LON: TRST — GBP932 million), a consumer review platform. HitHawk called TrustPilot “a brazenly deceitful business” and said its “model relies on pressuring businesses into paying for premium services by leveraging negative reviews… In other words: Trustpilot profits not from promoting trust, but by fabricating fear.”
In May 2025, The Bear Cave also highlighted allegations from Pieter Levels, a respected serial entrepreneur, who tweeted in part,
“Trustpilot is a pay-to-play racket and should be investigated by FTC. Everyone in the startup chat groups already know this btw, we know if you pay your scores go up. Half of us don't want to pay so we don't have good ratings…”
Recent Resignations
Notable executive departures disclosed in the past week include:
CFO of Cohen & Steers (NYSE: CNS — $3.50 billion) “has secured another opportunity” after a little over one year.
CFO of Insulet Corp (NASDAQ: PODD — $23.3 billion) departed after one and a half years. In May, the company’s CEO departed after three years and also left the board and in August the company’s Chief Human Resources Officer departed. The company has had four CEOs and four CFOs in the last ten years and in May 2024 Blue Orca Capital published on the company and raised concerns about international competition coming for the company’s insulin delivery products.
CFO of Neogen Corp (NASDAQ: NEOG — $1.22 billion) resigned “to pursue other opportunities” after three years. The company’s CEO and Chief Operating Officer both departed this year as well. The company is audited by BDO.
CFO of Charles River Laboratories (NYSE: CRL — $7.65 billion) resigned “to pursue other opportunities” after three and a half years. In January 2025, Charles River Laboratories was on the B7A FOIA exemption list, indicating a potential undisclosed SEC investigation.
Data for this section is provided by VerityData from VerityPlatform.com
News of the Week
“Attorney General James Indicts Strip Club Company Executives for Multimillion Dollar Tax Fraud Scheme and Bribery of State Tax Auditor” (NY AG)
“New York Attorney General Letitia James today announced the indictments of top executives of RCI Hospitality Holdings, Inc. (RCI), a company that owns and operates strip clubs throughout the country, for their roles in a major, multimillion dollar criminal tax fraud and bribery scheme. An investigation by the Office of the Attorney General revealed that RCI executives bribed an auditor with the New York Department of Taxation and Finance to avoid paying over $8 million in sales taxes to New York City and the state from 2010 to 2024. A 79-count indictment unsealed today charges RCI, five of its executives, and three RCI-owned strip clubs in Manhattan with conspiracy, bribery, and criminal tax fraud, among other crimes.”
The Bear Cave believes the indictment is particularly problematic for RCI Hospitality Holdings (NASDAQ: RICK — $238 million) because the company’s CEO personally guarantees the company’s debt, there are limited natural buyers for its assets, and other states may use the New York indictments as a reason to further scrutinize the company. Read more in The Bear Cave’s past coverage: “Problems at RCI Hospitality Holdings (RICK)” and “More Problems at RCI Hospitality Holdings (RICK)” and here.
“To Avoid Trial, a Short Seller Puts His Hopes on Trump” (WSJ)
“Some lawyers say the fraud charges against Left are unusual because they don’t allege he put out false information. Instead, prosecutors allege his tactic of commenting on stocks and then quickly trading was an illegal scheme. He didn’t give the whole story about his trading plans, making his commentary misleading, according to prosecutors.”
The Bear Cave previously published “In Defense of Andrew Left,” which outlined potential deficiencies in the case against Andrew Left.
L/S fund manager David Orr was interviewed on the Other People’s Money podcast here.
New SEC FOIA Logs released this week included AppLovin (NASDAQ: APP — $220 billion) on the B7A FOIA exemption list, indicating a potential undisclosed SEC investigation. The FOIA request was filed by Olivia Solon at Bloomberg News.
“None of us really feels like our lives are changing. But subtly, everything is being optimized.” — Great post about AI impact from @Mike10947310
Tweets of the Week
Until next week,
The Bear Cave