The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors that acquired Merit Medical Systems, Inc. (“Merit” or the “Company”) (NASDAQ: MMSI) common stock between February 26, 2019 and October 30, 2019, inclusive (the “Class Period”). Merit investors have until February 3, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On July 25, 2019, post-market, the Company announced disappointing financial results for second quarter 2019, reporting net income of $6.9 million, or $0.12 per share, compared to $10.9 million, or $0.21 per share for the same period in the prior year. Merit’s Chief Executive Officer cited “a number of factors affecting revenues and gross margins during the second quarter,” including “foreign exchange [and] slower than anticipated conversion and uptake of acquired products.”
On this news, the Company’s stock price fell $13.84, or over 25%, to close at $41.00 on July 26, 2019, thereby injuring investors.
On October 30, 2019, the Company announced its third quarter 2019 financial results, lowered revenue guidance for fiscal 2019, and eliminated previously issued guidance for fiscal 2020.
On this news, the Company’s stock price fell $8.45, or 29%, to close at $20.66 per share on October 31, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that 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; (2) that 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 (3) that in light of the foregoing, the Company's reported financial guidance for fiscal 2019 and 2020 was made without a reasonable basis.
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If you purchased Merit securities during the Class Period, you may move the Court no later than February 3, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Merit securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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