BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased ConforMIS, Inc. ("ConforMIS" or the "Company") (NASDAQ:CFMS) securities: (1) pursuant and/or traceable to the Company's Registration Statement and Prospectus issued in connection with the Company's initial public offering on or about July 1, 2015 (the "IPO" or the "Offering"); and/or (2) on the open market between July 1, 2015 and August 28, 2015, both dates inclusive (the "Class Period"). Investors who suffered losses on their investment in ConforMIS securities are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights.
On July 1, 2015, the Company completed its IPO, and issued 10.35 million shares. The IPO was conducted pursuant to a Registration Statement and Prospectus filed with the SEC and declared effective as of June 30, 2015. Unbeknownst to investors the Company had allegedly failed to fully disclose the potential for a voluntary recall of its products due to a product malfunction.
On August 31, 2015, ConforMIS disclosed that the Company has started a voluntary recall of almost 1,000 instrument sets used with certain of its knee-replacement product systems in response to recent complaints of moisture. The Company further disclosed that it has temporarily suspended use of a ethylene oxide sterilization process believed to be tied to issue; and that it sees manufacturing “substantially reduced” in September and October 2015 as its investigation is completed. ConforMIS now expects a negative effect on sales, and sees 2015 revenues in the range of $64m-$66m, versus a previous revenue range of $72m-$74m. On this news shares of ConforMIS fell $3.78 to close on August 31, 2015 at $16.00, a one day decline of 19% on volume of over 2 million shares.
The complaint alleges that throughout the Class Period, defendants failed to disclose that its manufacturing process was flawed, creating defective knee replacement product systems, and as a result the Company’s prior financial and operational statements were false and misleading.
If you purchased shares of ConforMIS during the Class Period you may move the Court no later than November 2, 2015 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. 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 wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.