Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of investors that purchased Merit Medical Systems, Inc. (NASDAQ: MMSI) securities between February 26, 2019 and October 30, 2019 (the Class Period). Investors have until February 3, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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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 Companys 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 Merits business, conceding that many of these failures were due to their own overestimation and forecasting.
Following these disclosures, Merits stock price declined more than 29%, to close at $20.66 per share on October 31, 2019.
The complaint, filed on December 3, 2019, alleges that throughout the Class Period defendants made false and misleading statements and/or failed to disclose adverse information concerning Merits business and prospects. Specifically, defendants 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 Companys reported financial guidance for fiscal 2019 and 2020 was made without a reasonable basis. As a result of defendants material misrepresentations and omissions, Merit stock traded at artificially inflated prices of more than $62 per share.
If you purchased Merit Medical Systems securities during the Class Period, are a long-term stockholder, have information, 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 Brandon Walker or Melissa Fortunato by email at [email protected], or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.