SAN DIEGO & IRVINE, Calif.--(BUSINESS WIRE)--Shareholder rights firm Robbins Arroyo LLP announces that a class action complaint was filed against Endologix, Inc. (NASD: ELGX) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Endologix securities between May 5, 2016 and May 18, 2017.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/endologix-inc-june-16
Endologix, Inc. Accused of Lying to Investors About the Safety of its Leading Product
According to the complaint, Endologix – a manufacturer of medical devices for the treatment of abdominal aortic aneurysms in the U.S. and internationally – grossly misled shareholders concerning the safety of Nellix, the company's primary selling point and proposed solution to abdominal aortic aneurysms. While assuring investors that the device had positive clinical data and was on track to be approved by the Federal Drug Administration ("FDA"), Endologix officers concealed a "serious and unsolvable problem with the Nellix device" in which it drifts from its initial placement in the patient posing significant dangers to the subject. Endologix's officers received weekly, and sometimes daily, briefings regarding the increasing number of complaints from doctors who utilized the device in Europe and additionally oversaw a "task force" to manage the dilemma. Multiple Endologix employees left the company "shocked and disgusted" when officers praised Nellix on an investor call and failed to mention anything about the migration issue. On May 17, 2017, Endologix revealed it would not be seeking FDA approval of the first generation Nellix device, but would seek approval of a second generation Nellix device, which will require a completely separate clinical trial and will push the timeline for approval of Nellix to 2020. On this news, Endologix stock fell nearly 40%, or $6.77 per share, to close at $4.44 share on May 19, 2017.
Endologix Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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