Merit Medical Systems, Inc.
Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of Merit Medical Systems, Inc. (“Merit” or the “Company”) (NASDAQ: MMSI) between February 26, 2019 and October 30, 2019, inclusive (the “Class Period”).
If you purchased Merit securities, and/or would like to discuss your legal rights and options, please click “Join Class Action” above.
New York, New York — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of Merit Medical Systems, Inc. (“Merit” or the “Company”) (NASDAQ: MMSI) between February 26, 2019 and October 30, 2019, inclusive (the “Class Period”). The lawsuit filed in the United States District Court for the Central District of California alleges violations of the Securities Exchange Act of 1934.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information concerning Merit’s business and prospects. Specifically, defendants failed to disclose that: (a) the integrations of Cianna and Vascular Insights, including their products, sales people, and R&D facilities, had caused operational disruptions and reduced sales and were months behind schedule; (b) sales of acquired company products had slowed substantially due to pre-acquisition pipeline fill, in particular for Vascular Insights products which, as late as July 2019, had zero orders during fiscal 2019; and (c) in light of the foregoing, the Company’s reported financial guidance for fiscal 2019 and 2020 was made without a reasonable basis.
On July 25, 2019, following the Company’s second quarter 2019 financial results the Company held a conference call for analyst’s and investors to discuss the results. On that call Defendants admitted that the miss and guidance reduction were in part due to the fact that ClariVein had zero orders for the first half of the year due to pipeline filling prior to the acquisition.
Following these disclosures the Company’s stock price fell more than 25% from a close of $54.84 per share on July 25, 2019, to a close of $41.00 per share on July 26, 2019, on volume of more than 6.2 million shares.
Then, on October 30 2019, after the market closed, the Company issued a press release announcing the Company’s third quarter 2019 financial results. The Company disclosed significant operational issues in all aspects of Merit’s business. Defendants admitted that they were months behind in their integration of Cianna and Vascular Insights, their integration of R&D facilities was too expensive and had necessitated a 2% to 5% reduction in headcount, and that they had to take a material revenue recognition adjustment in the quarter.
Following this disclosure, Merit’s stock price declined more than 29%, from a close of $29.11 per share on OCtober 30, 2019, to a close of $20.66 per share on October 31, 2019.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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