SAN DIEGO and ROCK HILL, S.C., July 6, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that a federal securities fraud class action complaint was filed in the U.S. District Court for the District of South Carolina Rock Hill Division. The complaint alleges that officers and directors of 3D Systems Corporation (NYSE :DDD ) violated the Securities Exchange Act of 1934 between October 29, 2013 and October 22, 2014, by making materially false and misleading statements about 3D's business prospects. 3D Systems is an international 3D printing company that provides 3D printers, print materials, custom-parts, and software.
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3D Systems Corporation Misrepresents its Financial Condition
According to the complaint, on October 29, 2013, 3D Systems announced it was tripling its manufacturing capacity over the next 12 months and accelerating the development of additional direct metal 3D printer models. It also touted the strategic value of the company's recent acquisitions and said it planned to quadruple direct metal printing sales over the next 12 to 18 months. Following the announcement, 3D stock soared, reaching $80 per share on November 18, 2013. However, the complaint alleges that the company had no basis to represent that it would be able to accomplish its capacity and sales goals. And, many of the company's acquisitions were not strategically acquired and would require significant additional investment to integrate into 3D.
The complaint further alleges that 3D's wrongful acts and omissions caused an unrealistically positive assessment of the company's financial condition, causing its shares to be traded at artificially inflated prices. 3D's inflated share price allowed company officials to receive enormous profits from the sale of 3D stock. For example, throughout the class period company executives sold over $11 million worth of their shares, and on May 29, 2014, 3D offered 5,950,000 shares of its stock, netting approximately $300 million. On October 22, 2014, 3D revealed disappointing preliminary third quarter results and guided lower full year revenue and earnings. The company blamed its poor results on capacity constraints for its direct metal printers. On this news, 3D shares plummeted over 15% on high volume.
3D Systems Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP