Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Merit Medical Systems, Inc.
SAN DIEGO--(BUSINESS WIRE)--Dec 3, 2019--
Robbins Geller Rudman & Dowd LLP ( https://www.rgrdlaw.com/cases-merit-medical-class-action-lawsuit.html ) today announced that it filed a class action on behalf of an institutional investor seeking to represent purchasers of Merit Medical Systems, Inc. (NASDAQ:MMSI) common stock during the period between February 26, 2019 and October 30, 2019 (the “Class Period”). This action was filed in the Central District of California and is captioned Bucks County Employees Retirement Fund v. Merit Medical Systems, Inc., et al., No. 19-cv-02326.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Merit common stock during the Class Period to seek appointment as lead plaintiff in the Merit class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Merit class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Merit class action lawsuit. An investor’s ability to share in any potential future recovery of the Merit class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the Merit class action lawsuit, you must move the Court no later than 60 days from today. If you wish to discuss the Merit class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Shawn A. Williams of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. You can view a copy of the complaint as filed at https://www.rgrdlaw.com/cases-merit-medical-class-action-lawsuit.html.
The Merit class action lawsuit charges Merit and certain of its officers with violations of the Securities Exchange Act of 1934. Merit is a manufacturer and marketer of proprietary disposable medical devices used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. During 2018, Merit acquired three companies: Becton, Dickinson and Company, Cianna Medical, Inc., and Vascular Insights, LLC.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information concerning Merit’s business and prospects. Specifically, defendants failed to disclose that: (a) the integrations of Cianna and Vascular Insights, including their products, sales people, and R&D facilities, had caused operational disruptions and reduced sales and were months behind schedule; (b) sales of acquired company products had slowed substantially due to pre-acquisition pipeline fill, in particular for Vascular Insights products which, as late as July 2019, had zero orders during fiscal 2019; and (c) in light of the foregoing, the Company’s reported financial guidance for fiscal 2019 and 2020 was made without a reasonable basis. As a result of defendants’ material misrepresentations and omissions, Merit stock traded at artificially inflated prices of more than $62 per share.
On July 25, 2019, Merit announced disappointing second quarter 2019 financial results and cut its fiscal 2019 sales and earnings per share outlook. Defendants attributed the reductions to a variety of factors, including “slower than anticipated conversion and uptake of acquired products.” On this news, the Company’s stock price declined more than 25%. Then, on October 30, 2019, the Company announced its third quarter 2019 financial results, reporting adjusted earnings per share well below consensus estimates, and slashed fiscal 2019 revenue and earnings per share guidance by 20%. Furthermore, defendants stated that, in addition to the fiscal 2019 guidance cut, “2020 guidance [was] off the table” until they had reasonable confidence in their forecasting ability, and reported significant operational issues in all aspects of Merit’s business, conceding that many of these failures were due to their “own overestimation and forecasting.” Following these disclosures, Merit’s stock price declined more than 29%, from a close of $29.11 per share on October 30, 2019, to a close of $20.66 per share on October 31, 2019.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
View source version on businesswire.com:https://www.businesswire.com/news/home/20191203006087/en/
CONTACT: Robbins Geller Rudman & Dowd LLP
Shawn A. Williams, 800-449-4900
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES
SOURCE: Robbins Geller Rudman & Dowd LLP
Copyright Business Wire 2019.
PUB: 12/03/2019 08:00 PM/DISC: 12/03/2019 08:01 PM