NEW YORK, June 3, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, notifies investors of class action against TransEntrix, Inc. ("TransEntrix" or "the Company") (NYSE MKT: TRXC ). The class action has been filed in the United States District Court, Eastern District of North Carolina, on behalf of a class consisting of all persons or entities who purchased TransEntrix securities during the period between February 10, 2016 and May 10, 2016 inclusive (the "Class Period").
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements or failed to disclose adverse information regarding key aspects of the Company's business. Specifically, the complaint alleges defendants failed to disclose deficiencies within the Company's 510(k) submission regarding the SurgiBot that undermined the likelihood that the SurgiBot would receive FDA clearance, which would leave the Company unable to commercialize the SurgiBot in 2016 and would impair the Company's ability to obtain approval for and commercialize its other robotic surgery platform in the United States. As a result of these false statements and/or omissions, TransEnterix common stock traded at artificially inflated prices during the Class Period.
On April 20, post-market, TransEnterix announced that the Food and Drug Administration ("FDA") informed the Company on the previous day, April 19, 2016, that it has determined that "SurgiBot™ System does not meet the criteria for substantial equivalence based upon the data and information submitted by TransEnterix in its 510(k) submission." Following this news, TransEnterix's stock dropped as much as $2.99, or 63.08%, to just $1.75 in after-hours trading on April 20, 2016.
Then on May 20, 2016, the Company issued a press release stating that it "expect[ed] to have further discussion with the FDA, but currently believes that a new 510(k) submission would be required to obtain clearance," that it was reprioritizing its near-term regulatory efforts to focus on another submission, and that, as a result, it "ha[d] taken actions to reduce headcount and investment related to the SurgiBot."
Following this news, the price of TransEnterix fell 10% to close at $1.84 per share on May 11, 2016.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint and join the action please contact Peretz Bronstein, Esq. or his Investor Relations Coordinator, Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email email@example.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in TransEntrix you have until August 1, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Eitan Kimelman
212-697-6484 | firstname.lastname@example.org
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