NEW YORK, March 7, 2017 /PRNewswire/ -- Kaplan Fox
& Kilsheimer LLP (www.kaplanfox.com) is investigating claims on
behalf of investors of Invuity, Inc. ("Invuity" or the "Company")
(NASDAQ: IVTY).
A class action complaint has been filed in the United States
District Court, Northern District of California against Invuity and certain
officers of the Company on behalf of purchasers of Invuity's common
stock between July 19, 2016 and
November 3, 2016, inclusive (the
"Class"), alleging violations of the Securities Exchange Act of
1934.
The complaint alleges that on July 19,
2016, during a conference call with analysts, the Company
emphasized that it would continue to report increasing revenue
growth in its current accounts. Further, the complaint
alleges that Invuity's President and CEO stated that "[w]e have not
seen plateauing" and "[w]e've been very encouraged by. . .the
seemingly open-ended opportunity available to us to go deep in
hospitals."
The complaint alleges that the above statements and others made
during the Class Period were materially false and misleading
because they failed to disclose and misrepresented the following
adverse facts known by Defendants during the Class Period:
(1) that the continued opportunities for growth in mature active
accounts stagnated after the initial sale of a new product; (2)
that revenues per active account were actually declining; (3) that
the Company's sales force was not meeting stated revenue growth
goals in mature active accounts; and (4) as a result of the
foregoing, Defendants' statements about the Company's business,
operations, and prospects were false and misleading and/or lacked a
reasonable basis at the time the statements were made.
The complaint further alleges that the truth was revealed on
November 3, 2016, after the close of
trading, when Invuity reported its third quarter 2016 earnings for
the period ended September 30,
2016. Among other things, the complaint alleges that the
Company dramatically cut its revenue expectations and 2017 guidance
and stated during a conference call that "[w]e've kind of got
ourselves into a holding pattern on the average active account
revenue."
According to the complaint, upon the release of the after-hours
news on November 3, 2016, the price
of Invuity common stock plunged more than $4 per share, or 44.86% to close at $5.10 per share on November 4, 2016, on unusually high trading
volume.
If you are a member of the proposed Class, you may move the
court no later than April 28, 2017 to
serve as a lead plaintiff for the purported class. You need
not seek to become a lead plaintiff in order to share in any
possible recovery. If you would like to discuss the complaint
or our investigation, please contact us by emailing
pmayer@kaplanfox.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP,
with offices in New York,
San Francisco, Los Angeles, Chicago and New
Jersey, has many years of experience in prosecuting investor
class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit
our website at www.kaplanfox.com. If you have any questions
about this Notice, the action, your rights, or your interests,
please contact:
Matthew P. McCahill
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: mmccahill@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California
94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
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SOURCE Kaplan Fox &
Kilsheimer LLP