The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Merit Medical Systems, Inc. I...
January 16 2020 - 12:00PM
Business Wire
The Law Offices of Frank R. Cruz announces that a class action
lawsuit has been filed on behalf of investors that acquired Merit
Medical Systems, Inc. (“Merit” or the “Company”) (NASDAQ: MMSI)
common stock between February 26, 2019 and October 30, 2019,
inclusive (the “Class Period”). Merit investors have until
February 3, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to
participate.
On July 25, 2019, post-market, the Company announced
disappointing financial results for second quarter 2019, reporting
net income of $6.9 million, or $0.12 per share, compared to $10.9
million, or $0.21 per share for the same period in the prior year.
Merit’s Chief Executive Officer cited “a number of factors
affecting revenues and gross margins during the second quarter,”
including “foreign exchange [and] slower than anticipated
conversion and uptake of acquired products.”
On this news, the Company’s stock price fell $13.84, or over
25%, to close at $41.00 on July 26, 2019, thereby injuring
investors.
On October 30, 2019, the Company announced its third quarter
2019 financial results, lowered revenue guidance for fiscal 2019,
and eliminated previously issued guidance for fiscal 2020.
On this news, the Company’s stock price fell $8.45, or 29%, to
close at $20.66 per share on October 31, 2019, thereby injuring
investors further.
The complaint filed in this class action alleges that throughout
the Class Period, Defendants made materially false and/or
misleading statements, as well as failed to disclose material
adverse facts about the Company’s business, operations, and
prospects. Specifically, Defendants failed to disclose to
investors: (1) that 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; (2) that 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 (3) that in
light of the foregoing, the Company's reported financial guidance
for fiscal 2019 and 2020 was made without a reasonable basis.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Merit securities during the Class Period, you
may move the Court no later than February 3, 2020 to ask the
Court to appoint you as lead plaintiff. To be a member of the Class
you need not take any action at this time; you may retain counsel
of your choice or take no action and remain an absent member of the
Class. If you purchased Merit securities, have information or would
like to learn more about these claims, or have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Frank R. Cruz, of The Law
Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los
Angeles, California 90067 at 310-914-5007, by email to
info@frankcruzlaw.com, or visit our website at
www.frankcruzlaw.com. If you inquire by email please include your
mailing address, telephone number, and number of shares
purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20200116005249/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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