SAN DIEGO, Feb. 26, 2021 /PRNewswire/ — Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of shareholders of Penumbra, Inc. (“Penumbra” or the “Company”) (NYSE: PEN). The class action is on behalf of shareholders who purchased Penumbra between August 3, 2020 and December 15, 2020, both dates inclusive (the “Class Period”). If you wish to serve as lead plaintiff in this class action, you must move the Court no later than March 16, 2021.
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Penumbra is a global healthcare company that develops, manufactures, and sells innovative medical devices for patients suffering from stroke and other vascular and neurovascular diseases. Until recently, one of the Company's flagship products was the “Jet 7 Xtra Flex,” an aspiration catheter designed to be inserted into an affected artery, navigated to a blood clot and used to suck the clot out of the patient's body. In mid-2020, concerns about the Jet 7 Xtra Flex's safety began to emerge. Despite these concerns, Penumbra repeatedly assured investors during the Class Period that the Jet 7 Xtra Flex was “absolutely safe,” “exactly what we hoped it would be,” and “not a product that has any possibility of needing to be recalled.” The Company further assured investors that it was taking all necessary steps to protect patients.
As alleged in the Class Action Complaint, these statements and other statements that Defendants made during the Class Period were materially false and misleading in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose material adverse facts about the Jet 7 Xtra Flex's safety, as well as the Company's business, operations, and prospects. Among other things, Defendants failed to disclose to investors: (1) that the Jet 7 Xtra Flex had known design defects that made it unsafe for its normal use; (2) that Penumbra did not adequately address the risk of Jet 7 Xtra Flex causing serious injury and deaths, which had already occurred; (3) that the Jet 7 Xtra Flex was likely to be recalled due to its safety issues; and (4) as a result, Penumbra's public statements as set forth above were materially false and misleading at all relevant times.
The truth emerged through a series of disclosures that caused Penumbra's stock price to fall and investors to suffer substantial losses. On September 14, 2020, the Foundation for Financial Journalism, an independent non-profit news outlet, published an article raising serious issues about the Jet 7 Xtra Flex's safety profile, citing twelve deaths reported to the FDA that occurred after a surgeon injected an iodine contrast dye into the Jet 7 Xtra Flex, and claiming that warnings against using the product with contrast dye and non-Penumbra products did little to address the Jet 7 Xtra Flex's safety issues.
A lead plaintiff will act on behalf of all other class members in directing the Penumbra class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Penumbra class-action lawsuit. An investor's ability to share any potential future recovery of the Penumbra class action lawsuit is not dependent upon serving as lead plaintiff. If you are interested in learning more about the case, please contact Jim Baker (email@example.com) at 619-814-4471. If you email, please include your phone number.
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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson Fistel, LLP
Jim Baker, 619-814-4471
SOURCE Johnson Fistel, LLP