SAN DIEGO & WARSAW, Ind.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Zimmer Biomet Holdings, Inc. (NYSE: ZBH) in the U.S. District Court for the Northern District of Indiana, South Bend Division. The complaint is brought on behalf of all purchasers of Zimmer securities between September 7, 2016 and October 31, 2016, for alleged violations of the Securities Exchange Act of 1934 by Zimmer's officers and directors. Zimmer, together with its subsidiaries, provides musculoskeletal healthcare products and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
View this information on the law firm's Shareholder Rights Blog:
Zimmer Accused of Lying About Supply Chain Issues
According to the complaint, on September 7, 2016, Zimmer participated in the Wells Fargo Securities Health Care Conference, during which Zimmer's Vice President of Investor Relations and Treasurer, Robert J. Marshall, Jr., affirmed the company's guidance for the remainder of 2016. The company had announced in July 2016 that revenue guidance for the full year 2016 was $7.680 billion to $7.715 billion, and diluted earnings per share guidance was $1.50 to $1.75. Marshall also noted the importance of the company's growth across all major countries in its Asia-Pacific segment.
However, the complaint alleges that Zimmer officials failed to disclose that supply chain problems led to a decrease in order fulfillment rates, most notably within Zimmer's knee and hip portfolios, and that as a result, the company would not achieve its revenues and profit forecast. On October 31, 2016, Zimmer lowered guidance for the full year 2016 to $7.630 billion to $7.650 billion. The company elaborated, stating, "Third quarter revenue was below our expectations, primarily due to execution issues with our large joint supply chain, which led to a degradation in order fulfillment rates late in the quarter …." The company added that as a consequence, it had underestimated demand for certain brands with its existing customer base, which affected its ability to capitalize on new customer opportunities. On this news, Zimmer's stock fell $17.15 per share, or nearly 14%, to close at $105.40 per share on October 31, 2016.
Zimmer Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@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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