Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against PENUMBRA, INC.
RADNOR, PA / ACCESSWIRE / January 23, 2021 / Kessler Topaz Meltzer & Check, LLP’s law firm recalls that it has filed a class action lawsuit against Penumbra, Inc. (NYSE: PEN) (“Penumbra”) on behalf of those who have bought or acquired common stock of Penumbra between Penumbra became August 3, 2020 and December 15, 2020 inclusive (the “Class Period”).
Important Deadline: Investors who have purchased or acquired common shares of Penumbra during the Class Period may apply for appointment as Plaintiff’s Principal Representative no later than March 16, 2021. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484-270-1453) or Adrienne Bell, Esq. (484-270-1435); toll free at (844) 887-9500; by email email@example.com; or click on https://www.ktmc.com/penumbra-inc-securities-class-action?utm_source=PR&utm_medium=link&utm_campaign=penumbra
Penumbra is a global healthcare company that develops, manufactures, and markets innovative medical devices for patients with stroke and other vascular and neurovascular diseases. Until recently, one of Penumbra’s flagship products was the Jet 7 Xtra Flex, an aspiration catheter that was inserted into an affected artery, navigated to a blood clot, and used to aspirate the clot from the patient’s body. The Jet 7 Xtra Flex was launched in the US market in July 2019 and quickly became a “growth driver” for Penumbra, a major source of new revenue.
However, concerns about the safety of the Jet 7 Xtra Flex surfaced in mid-2020. On July 27, 2020, Penumbra issued a notice to its U.S. customers and practitioners acknowledging reported cases where the distal tip of the catheter broke or expanded, creating a risk of injury or death. The notice warned doctors to exercise caution with Penumbra’s Jet 7 Xtra Flex, claiming that Penumbra is “committed to product safety and performance” and “continues to monitor and investigate these adverse event reports”. Despite the foregoing, Defendants repeatedly reassured investors during the class period that the Jet 7 Xtra Flex is “completely safe” and “not a product that may have to be recalled” as Penumbra took all necessary steps to protect patients.
The story goes on
The class begins on August 3, 2020 when Penumbra announced its financial results for the second quarter of 2020. During a conference call with analysts the same day, Adam Elsesser, Chief Executive Officer of Penumbra, was asked about the Jet 7 Xtra Flex MAX, a delivery device that uses the Jet 7 Xtra Flex catheter, replied that Penumbra was “part of the work with.” Done every new product that was released to evaluate and make sure everything was fine, “bragging that the device” is exactly what we were hoping for. “
The truth about the safety of Jet 7 Xtra Flex has been revealed to the market through a number of disclosures. Initially, the Foundation for Financial Journalism (“FFJ”), an independent not-for-profit news agency, published an article on September 14, 2020 that raised serious questions about the security profile of the Jet 7 Xtra Flex. The FFJ found that since its inception in mid-2019, an FDA database has listed twelve deaths that occurred after a surgeon injected an iodine contrast dye into the Jet 7 Xtra Flex. Following this news, Penumbra’s share price fell nearly 3% from $ 199.43 per share on September 13, 2020 to $ 193.66 per share on September 14, 2020.
On November 23, 2020, an article was published in the Journal of NeuroInterventional Surgery presenting the cases of three patients who suffered from Jet 7 Xtra Flex device malfunction, including two deaths. As this report got wider, Penumbra stock fell from $ 254.71 on November 23, 2020 to $ 224.12 on November 25, 2020, a decrease of about 12%. Finally, on December 15, 2020, after the market closed, Penumbra issued a press release announcing that the Jet 7 Xtra Flex is being “urgently” recalled because the catheter is “vulnerable to damage to the distal tip during use “which could result in injury or death. Following the news, Penumbra’s share price fell 7% from $ 188.82 per share on December 15, 2020 to $ 174.98 per share on December 16, 2020, down from $ 13.84 per share.
The complaint alleges that throughout the class period, defendants failed to advise investors that: (1) the Jet 7 Xtra Flex had known design flaws that made it unsafe for normal use; (2) Penumbra has not adequately addressed the risk that the Jet 7 Xtra Flex could cause serious injury or death that has actually occurred. (3) The Jet 7 Xtra Flex has likely been recalled because of its safety issues. and (4) as a result, Penumbra’s public statements have been materially false and misleading at all relevant times.
If you would like to discuss this class action lawsuit for securities fraud, or if you have any questions about this notice or your rights or interests in relation to this litigation, please contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. Or Adrienne Bell) , Esq.) At (844) 887-9500 (toll free) or (610) 667-7706 or by email at firstname.lastname@example.org.
Penumbra investors can attempt to be appointed as the class lead plaintiff by March 16, 2021 at the latest, by Kessler Topaz Meltzer & Check, LLP or other attorney, or they can choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP, pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other federal and state law violations. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has reclaimed billions of dollars on behalf of institutional and individual investors from the US and around the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro Jr., Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(844) 887-9500 (toll free)
SOURCE: Kessler Topaz Meltzer & Check, LLP
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