RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Merit Medical Systems, Inc. ("Merit Medical" or the "Company") (NASDAQ: MMSI) securities during the period from February 26, 2019 and October 30, 2019, inclusive (the "Class Period").
Merit Medical shareholders may, no later than February 3, 2020, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Merit Medical and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
On July 25, 2019, post-market, the Company announced disappointing financial results for second quarter 2019, reporting net income of $6.9 million, or $0.12 per share, compared to $10.9 million, or $0.21 per share for the same period in the prior year. Merit’s Chief Executive Officer cited “a number of factors affecting revenues and gross margins during the second quarter,” including “foreign exchange [and] slower than anticipated conversion and uptake of acquired products.”
On this news, the Company’s stock price fell $13.84, or over 25%, to close at $41.00 on July 26, 2019, thereby injuring investors.
On October 30, 2019, the Company announced its third quarter 2019 financial results, lowered revenue guidance for fiscal 2019, and eliminated previously issued guidance for fiscal 2020.
On this news, the Company’s stock price fell $8.45, or 29%, to close at $20.66 per share on October 31, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that 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; (2) that 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 (3) that in light of the foregoing, the Company's reported financial guidance for fiscal 2019 and 2020 was made without a reasonable basis.
If you are a member of the class, you may, no later than February 3, 2020, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.