SAN DIEGO, Jan. 14, 2017 /PRNewswire/ -- Johnson & Weaver, LLP announces that a class action complaint was filed on behalf of purchasers of Zimmer Biomet Holdings, Inc. (NYSE: ZBH) securities during the period between September 7, 2016, through October 31, 2016 (the "Class Period").
Zimmer Biomet provides musculoskeletal healthcare products and solutions. It designs, manufactures, and markets orthopaedic reconstructive products, such as knee and hip reconstructive products.
According to the complaint, throughout the Class Period defendants issued false and misleading statements to investors and failed to disclose that: (1) supply chain problems led to a decrease in order fulfillment rates, most notably within Zimmer Biomet's knee and hip portfolios; (2) as such, Zimmer Biomet would not achieve its revenues and profit forecast; and (3) as a result, defendants' statements about Zimmer Biomet's business, operations, and prospects, were false and misleading and lacked a reasonable basis. When the factual information became known, the complaint claims that investors suffered damages.
In a conference with investors, the Company stated: "Third quarter revenue was below our expectations, primarily due to execution issues within our large joint supply chain, which led to a degradation in order fulfillment rates late in the quarter as well as our performance in dental." Then added: "As a consequence, we underestimated demand for certain key cross-sell brands within our existing customer base, leading to a depletion of our safety stocks and also affecting our ability to capitalize on new customer opportunities."
On January 12, 2017, Zimmer announced it has concluded agreements with the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) to resolve a U.S. Foreign Corrupt Practices Act matter. The Company will pay fines, penalties, disgorgement and interest to the DOJ and SEC in a combined amount of approximately $30.5 million as a result of the resolution.
Plaintiff seeks to recover damages on behalf of all purchasers of Zimmer Biomet securities during the Class Period. If you wish to serve as lead plaintiff, you must move the Court no later than January 31, 2017.
If you have any questions concerning this notice, or if you purchased stock before the September 7, 2016, class period, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If you email, please include your phone number.
Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
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Johnson & Weaver, LLP
Jim Baker, 619-814-4471
SOURCE Johnson & Weaver, LLP