A class action complaint has been filed in the United States District Court, Northern District of California against Invuity and certain officers of the Company on behalf of purchasers of Invuity's common stock between July 19, 2016 and November 3, 2016, inclusive (the "Class"), alleging violations of the Securities Exchange Act of 1934.
The complaint alleges that on July 19, 2016, during a conference call with analysts, the Company emphasized that it would continue to report increasing revenue growth in its current accounts. Further, the complaint alleges that Invuity's President and CEO stated that "[w]e have not seen plateauing" and "[w]e've been very encouraged by. . .the seemingly open-ended opportunity available to us to go deep in hospitals."
The complaint alleges that the above statements and others made during the Class Period were materially false and misleading because they failed to disclose and misrepresented the following adverse facts known by Defendants during the Class Period: (1) that the continued opportunities for growth in mature active accounts stagnated after the initial sale of a new product; (2) that revenues per active account were actually declining; (3) that the Company's sales force was not meeting stated revenue growth goals in mature active accounts; and (4) as a result of the foregoing, Defendants' statements about the Company's business, operations, and prospects were false and misleading and/or lacked a reasonable basis at the time the statements were made.
The complaint further alleges that the truth was revealed on November 3, 2016, after the close of trading, when Invuity reported its third quarter 2016 earnings for the period ended September 30, 2016. Among other things, the complaint alleges that the Company dramatically cut its revenue expectations and 2017 guidance and stated during a conference call that "[w]e've kind of got ourselves into a holding pattern on the average active account revenue."
According to the complaint, upon the release of the after-hours news on November 3, 2016, the price of Invuity common stock plunged more than $4 per share, or 44.86% to close at $5.10 per share on November 4, 2016, on unusually high trading volume.
If you are a member of the proposed Class, you may move the court no later than April 28, 2017 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Matthew P. McCahill
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
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SOURCE Kaplan Fox & Kilsheimer LLP