SHAREHOLDER ALERT: Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Merit Medical Systems, Inc.
WILMINGTON, DE / ACCESSWIRE / December 4, 2019 / Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Merit Medical Systems, Inc. (NASDAQ GS:MMSI)?
- Did you purchase your shares between February 26, 2019 and October 30, 2019, inclusive?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of Merit Medical Systems, Inc. ("Merit" or the "Company") (NASDAQ GS: MMSI) between February 26, 2019 and October 30, 2019, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
If you purchased shares of Merit during the Class Period, or purchased shares prior to the Class Period and still hold Merit, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at [email protected], or at http://rigrodskylong.com/contact-us/.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public 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' alleged false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, 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."
On this news, shares of Merit fell over 29%, closing at $20.66 per share on October 30, 2019, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than February 3, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Delaware, New York, and California, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
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