Shuman Glenn & Stecker Investigates Merit Medical Systems, Inc.
February 24 2020 - 4:59PM
Business Wire
Shuman Glenn & Stecker announces that it is investigating
potential shareholder claims against certain officers and directors
of Merit Medical Systems, Inc. (“Merit” or the “Company”) (Nasdaq:
MMSI). Merit manufactures and markets disposable medical devices
for interventional, diagnostic, and therapeutic procedures in
cardiology, radiology, oncology, critical care, and endoscopy.
The Firm’s investigation relates to allegations raised in a
class action lawsuit filed against Merit and certain of its senior
officers and directors. The complaint alleges that the defendants
made false and misleading statements and/or 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.
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 these 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%. 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%
and withdrew any 2020 guidance. Following these disclosures,
Merit’s stock price declined more than 29%, to close at $20.66 per
share on October 31, 2019. Merit’s stock had traded at more than
$62 per share as recently as April 8, 2019.
If you currently own Merit common stock and are interested in
discussing your rights, or have information relating to this
investigation, please contact Kip Shuman toll free at (866)
569-4531 or email Mr. Shuman at kip@shumanlawfirm.com.
Shuman Glenn & Stecker represents investors throughout the
nation, concentrating its practice in stockholder litigation.
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version on businesswire.com: https://www.businesswire.com/news/home/20200224005942/en/
SHUMAN GLENN & STECKER Kip B. Shuman 100 Pine Street, Ste.
1250 San Francisco, CA 94111 Tel: 866.569.4531 Fax: 303.536.7849
Email: kip@shumanlawfirm.com Web: www.shumanlawfirm.com
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