Corporate Investigations Mount
Law Firms Launch Fiduciary Duty Probes Into Multiple Public Companies Following Governance and Market Concerns
Key Points
Pomerantz said Doximity’s investigation followed management’s explicit framing of margins: the firm cited a vice president’s remark that gross margin impact was “driven by AI compute costs,” and CEO Jeff Tangney warning that higher AI investment will “weigh on near-term margins.” The same alert also gave specific guidance: full-year revenue of $664 million to $676 million (vs. estimates of $687.04 million) and adjusted EBITDA of $323 million to $335 million.
In BP’s case, Pomerantz tied its probe to the board’s reasoning for removing Albert Manifold: BP’s May 26 decision cited “serious concerns raised to the Board related to important governance standards, oversight and conduct,” and the press release said the board was “surprised and disappointed to learn of governance oversight and conduct issues it deems unacceptable and has taken decisive action.” Pomerantz also included the market reaction detail: BP ADS fell $1.71 (3.85%) to close at $42.65 on May 26, 2026.
For ADC Therapeutics, Pomerantz added that although the Phase 3 LOTIS-5 results extended progression-free survival by 1.4 months, the safety tally was materially worse for Zynlonta: 27 deaths in the Zynlonta arm versus nine deaths in the immunotherapy comparator arm. It also reported the immediate market impact, with ADC shares falling $2.05 (66.56%) over the next two sessions to close at $1.03 on June 5, 2026.
For Rumble, Pomerantz gave the specific profit deterioration figures behind the “record revenue”/net loss narrative: the company reported a net loss of $30.2 million for Q1 2026, compared with a net loss of $2.6 million in the prior-year period, attributing the erosion to higher marketing costs, acquisition-related expenses, and increased research and development spending. It also reported the stock move tied to the disclosure: shares fell $0.97 (11.87%) to close at $7.20 on May 15, 2026.
Grabar Law Office announced it is investigating Power Solutions International (PSIX) after a federal securities class action alleged the company overstated its ability to capture data center demand while hiding costly manufacturing problems, according to Newsfile. The probe centers on whether PSIX executives misled investors before corrective disclosures sent shares falling 28.97% in a single day on March 3, 2026.
The PSIX investigation is part of a broader surge in securities fraud probes. Pomerantz LLP separately announced investigations into BP, Doximity, ADC Therapeutics, and Rumble — all following sharp stock declines tied to damaging corporate disclosures.
PSIX Hid Manufacturing Failures Behind Data Center Hype
Power Solutions International told investors it was riding the data center boom. Behind the scenes, the ramp-up in manufacturing was causing serious problems. Newsfile reported that a federal class action complaint alleged PSIX overstated demand capture while hiding the costs and inefficiencies of expanding production. Gross margins fell to 23.9% in Q3 2025, and shares dropped 19.1% the next day.
Things got worse in Q4 2025. On March 3, 2026, PSIX shares fell $24.84 — nearly 29% in one session — after the company revealed an 8% year-over-year margin decline, according to Newsfile. Grabar Law Office says its probe will examine whether executives breached their fiduciary duties by making prior positive statements that were misleading.
BP Chair Removed for Conduct the Board Called 'Unacceptable'
On May 26, 2026, BP's board unanimously removed Chair Albert Manifold. The reason: "serious concerns related to important governance standards, oversight and conduct," according to a BP press release cited by Pomerantz LLP. The board said it was "surprised and disappointed" and had taken "decisive action." Manifold admitted he may have "pushed hard" for change but denied specific wrongdoing.
BP's American depositary shares fell $1.71, or 3.85%, to close at $42.65 that same day. Pomerantz LLP launched an investigation into whether investors were harmed by misleading statements before the removal. This is the second time in under a year BP has lost a top executive under a cloud of conduct concerns, following the 2025 departure of CEO Murray Auchincloss.
Doximity and Rumble Blame AI Costs as Losses Mount
Doximity reported Q4 results on May 13, 2026, that missed estimates and rattled investors. The company issued full-year revenue guidance of $664 million to $676 million — well below analyst estimates of $687.04 million. CEO Jeff Tangney warned that "higher AI investment will weigh on near-term margins," while a VP linked the gross margin hit directly to "AI compute costs," according to Pomerantz LLP. Shares fell roughly 26% the morning after results.
Rumble told a similar story. It reported record revenue for Q1 2026 but also a net loss of $30.2 million — up from just $2.6 million in the same period a year earlier, a twelvefold jump. The company blamed higher marketing costs, acquisition expenses, and rising R&D spending. Shares fell $0.97, or 11.87%, to close at $7.20 on May 15, 2026, according to Pomerantz LLP, which announced a probe into whether investors were misled.
ADC Therapeutics Trial Shows 27 Deaths Versus 9 in Control Group
ADC Therapeutics announced Phase 3 LOTIS-5 trial results on June 3, 2026. The trial for its drug Zynlonta met its primary goal, extending progression-free survival by 1.4 months. But the safety data was alarming. There were 27 deaths in the Zynlonta arm — a 13.2% rate — compared with just 9 deaths, or 4.6%, in the immunotherapy control group, according to Pomerantz LLP.
The market reacted fast. ADC shares fell $2.05, or 66.56%, over two trading sessions, closing at $1.03 on June 5, 2026. Pomerantz LLP launched a probe into whether the company made misleading statements before the data was released. One analyst noted the death toll "may be difficult to accept for physicians, patients, and regulators," raising questions about the drug's path to broader FDA approval.
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