Law firm opens securities probes into five companies

Schall, Brown & Schwartz LLP announced securities-law investigations into Jackson Financial, Immunovant, La-Z-Boy, Foghorn Therapeutics and Scholastic, examining whether the companies made misleading statements or failed to disclose material information. The Jackson inquiry follows a research report alleging its subsidiary used captive reinsurance to inflate solvency metrics and conceal hedge losses; Jackson shares fell more than 5.6%. Immunovant’s investigation follows the failure of an IMVT-1402 study to meet its primary endpoint and the company’s decision to discontinue development for cutaneous lupus, news that sent shares down nearly 7.4%. La-Z-Boy’s investigation follows weaker-than-expected quarterly revenue and earnings and below-consensus sales guidance, while Foghorn’s follows the termination of two drug-development programs with Lilly; shares fell more than 30.8% after Foghorn’s announcement. Scholastic’s inquiry follows quarterly results showing a larger-than-expected loss per share, lower year-over-year revenue and a 24% decline in Education-segment sales; its shares fell more than 7.4%. The announcements describe law-firm investigations, not findings of wrongdoing.