The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Penumbra, Inc. (“Penumbra” or the “Company”) (NYSE: PEN) common stock between August 3, 2020 and December 15, 2020, inclusive (the “Class Period”). Penumbra investors have until March 16, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
One of the Company’s flagship products is the Jet 7 Xtra Flex, an aspiration catheter to remove blood clots.
On September 14, 2020, the Foundation for Financial Journalism published an article raising concerns about the Jet 7 Xtra Flex’s safety profile, including that there had been 12 reported deaths since the product was introduced in mid-2019.
On this news, the Company’s stock price fell $5.77, or 3%, to close at $193.66 per share on September 14, 2020.
On November 9, 2020, Quintessential Capital Management issued a research report on the Company entitled “Penumbra and its ‘Killer Catheter’: A tale of corporate greed and seemingly blatant disregard for patients’ lives[.]” The report accused Penumbra of a “seemingly blatant disregard for patients’ lives.” The Company continued to insist that the Jet 7 Xtra Flex was “absolutely safe” and refuted any claims to the contrary by stating they made “no sense” and there “isn’t an issue.”
On November 23, 2020, the Journal of NeuroInventional Surgery published an article presenting three cases of patients who had suffered due to malfunctions with the Jet 7 Xtra Flex. The article was widely disseminated over the next two days.
On this news, the Company’s stock price fell $30.59, or 12%, to close at $224.12 per share on November 25, 2020.
On December 8, 2020, Quintessential Capital Management released a follow-up research report entitled “Is Penumbra’s core scientific research authored by a fake person?: The incredible story of Penumbra’s Dr. Antik Bose[.]” The follow-up report alleged that some of Penumbra’s scientific research pieces appear to have been incorrectly attributed or even authored by a fake individual.
On this news, the Company’s share price fell $19.95 per share, or almost 9%, to close at $204.07 per share on December 8, 2020, thereby injuring investors.
On December 15, 2020, after the market closed, Penumbra announced that it was voluntarily “recalling its JET 7 Xtra Flex because the catheter may become susceptible to distal tip damage during use[, which] may result in potential vessel damage, and subsequent patient injury or death.”
On this news, the Company’s stock price fell $188.82 per share, or almost 7%, to close at $174.98 per share on December 16, 2020, thereby injuring investors.
The complaint filed 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 Jet 7 Xtra Flex had known design defects that made it unsafe for its normal use; (2) that Penumbra did not adequately address the risk of the Jet 7 Xtra Flex causing serious injury and deaths, which had in fact already occurred; (3) that the Jet 7 Xtra Flex was likely to be recalled due to its safety issues; and (4) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Penumbra securities during the Class Period, you may move the Court no later than March 16, 2021 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 Penumbra 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 info@frankcruzlaw.com, 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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View source version on businesswire.com: https://www.businesswire.com/news/home/20210119006011/en/
Contacts:
Frank R. Cruz, 310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com
