Penumbra, Inc. (PEN) Investigation:
The investigation centers on whether Penumbra misled investors about the company's flagship products for treating ischemic stroke.
On Nov. 9, 2020, Quintessential Capital Management ("QCM") published a scathing report, "Penumbra and its 'killer catheter.'" QCM concluded: (1) "Penumbra's flagship 'Jet 7' device is linked to 18 recorded deaths, 39 injuries: this might be only the 'tip of the iceberg;'" (2) "[t]he device is unsafe and unmarketable: we believe an FDA class 1 recall highly likely; (3) "Penumbra may have been highly misleading in critical parts of its communication with doctors and investors;" and, (4) "[d]espite appearances, financial metrics are rapidly deteriorating, anticipating a possible sharp drop in sales."
Then, on Dec. 8, 2020, QCM published another report accusing Penumbra of having engaged in a multi-year scheme to fraudulently produce a substantial portion of scientific literature using a fake character to support its product marketing to healthcare providers. According to QCM, "[t]his fraudulent character appears to have been fabricated by management in a reckless attempt to hide its involvement with critical research produced with significant undisclosed conflicts of interest."
Later that day, Penumbra admitted its co-founder, Arani Bose, was the real author of published scientific literature supportive of the company's activities.
Most recently, on Dec. 15, 2020, Penumbra announced it is voluntarily recalling all configurations of its JET 7 Xtra Flex device because it may be susceptible to damage during use and subsequent patient injury or death.
These events have driven the price of Penumbra shares sharply lower.
"We're focused on, among other things, investor losses and whether Penumbra misled investors about the Jet 7 safety and by using a fictional author to support its business activities," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Penumbra investor or have information that may assist our investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Penumbra should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP