Grant & Eisenhofer Files Class Action Lawsuit Against Inari Medical, Inc. on Behalf of Institutional Investor
May 13 2024 - 6:16PM
Business Wire
Institutional investor and union pension fund Plaintiff Michiana
Area Electrical Workers’ Pension Fund filed a class action lawsuit
today against Inari Medical, Inc. (“Inari” or the “Company”),
William Hoffman, Andrew Hykes, and Mitch C. Hill, alleging they
defrauded investors by issuing false and misleading statements
concerning Inari’s business, operations, and prospects,
particularly with regard to the Company’s financial results and the
success of its product sales.
The suit, brought in federal court in the United States District
Court for the Southern District of New York was filed by leading
investor law firm Grant & Eisenhofer P.A.
The action is brought on behalf of all persons or entities who
purchased or acquired Inari common stock between February 24,
2022 and February 28, 2024, inclusive (the “Class Period”). The
action is captioned Michiana Area Electrical Workers’ Pension Fund,
IBEW Local 153 v. Inari Medical, Inc., William Hoffman, Andrew
Hykes, and Mitch C. Hill, CASE # 1:24-cv-03686 (S.D.N.Y.).
The complaint alleges violations of Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934. Inari is a medical device
company that develops and manufactures a variety of products,
including minimally invasive, novel, catheter-based mechanical
thrombectomy devices and their accessories to address the unique
characteristics of specific medical conditions. These products are
aimed at improving outcomes for patients suffering from venous
thromboembolism (“VTE”) and other vascular diseases and conditions.
During the Class Period, Defendants consistently touted Inari’s
“record revenue,” purportedly driven by “the strength in our core
VTE business.” But Defendants failed to disclose that a significant
portion of its expenses were used to compensate medical
professionals improperly for using Inari’s products. In truth,
while Defendants were speaking positively about the Company’s
growth prospects, it had been engaging in illegal business
practices. Specifically, the Company had been unlawfully
compensating health care professionals in violation of the federal
Anti-Kickback Statute and Civil False Claims Act. Defendants also
misled investors regarding business expenses in order to conceal
their illicit conduct.
The market was thus shocked when, after the close of trading on
February 28, 2024, Inari revealed in its Form 10-K for fiscal year
2023 that it had received a civil investigative demand from the
U.S. Department of Justice, Civil Division, in connection with an
investigation under the federal Anti-Kickback Statute and Civil
False Claims Act, requesting information and documents primarily
relating to meals and consulting service payments provided to
health care professionals. In response to this news, Inari’s stock
price plummeted over $12 per share or 21% the very next trading day
– from a closing price of $58.26 per share on February 28, 2024 to
$46.12 per share on February 29, 2024 – wiping out approximately
$700 million in market capitalization in one trading day and
damaging investors.
For investors who purchased or acquired Inari common stock
during the Class Period, you are a member of this proposed Class
and may be able to seek appointment as lead plaintiff, which is a
court-appointed representative for the Class, by complying with the
relevant provisions for the Private Securities Litigation Reform
Act of 1995 (the “PSLRA”). See 15 U.S.C. Section
78u-4(a)(2)(A)(i)-(iv). If you wish to serve as lead plaintiff,
you must move the Court by no later than July 12, 2024,
which is the lead plaintiff deadline that was established by
publication of this notice on May 13, 2024. You do not need seek to
become a lead plaintiff in order to share in any possible recovery.
You may also retain counsel of your choice to represent you in this
action.
If you wish to discuss this action or have any questions
concerning this notice or your rights, please contact Caitlin M.
Moyna at Grant & Eisenhofer at 646-722-8513, or via email at
cmoyna@gelaw.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240513592772/en/
Grant & Eisenhofer Caitlin M. Moyna 646-722-8513
cmoyna@gelaw.com
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