Robbins geller rudman & dowd llp files class action suit against merit medical systems, inc

Robbins geller rudman & dowd llp announced that it filed a class action on behalf of an institutional investor seeking to represent purchasers of merit medical systems, inc. common stock during the period between february 26, 2019 and october 30, 2019 (the class period). this action was filed in the central district of california and is captioned bucks county employees retirement fund v. merit medical systems, inc., et al., no. 19-cv-02326. the private securities litigation reform act of 1995 permits any investor who purchased merit common stock during the class period to seek appointment as lead plaintiff in the merit class action lawsuit. a lead plaintiff acts on behalf of all other class members in directing the merit class action lawsuit. the lead plaintiff can select a law firm of its choice to litigate the merit class action lawsuit. an investor’s ability to share in any potential future recovery of the merit class action lawsuit is not dependent upon serving as lead plaintiff. the merit class action lawsuit charges merit and certain of its officers with violations of the securities exchange act of 1934. merit is a manufacturer and marketer of proprietary disposable medical devices used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. during 2018, merit acquired three companies: becton, dickinson and company, cianna medical, inc., and vascular insights, llc. the complaint alleges that during the class period, defendants made false and misleading statements and/or failed to disclose adverse information concerning merit’s 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 company’s 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.
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