SAN DIEGO & SAN JOSE, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Restoration Robotics, Inc. (NasdaqGM: HAIR) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 pursuant to the company's October 2017 initial public offering ("IPO"). Restoration Robotics, a medical device company, develops and commercializes image-guided robotic systems that assist physicians in hair restoration procedures.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/restoration-robotics-inc
Restoration Robotics Accused of Misrepresenting Its Prospects in its Offering Documents
According to the complaint, on October 13, 2017, Restoration Robotics held its IPO, offering 3,575,000 shares priced at $7.00 per share, raising $25 million in gross proceeds. Restoration Robotics told investors that the proceeds would fund the company's operations for a full year after the IPO and said that the company's robotic implantation functionality was ready to go. The truth would be revealed on March 20, 2018, when the company disclosed it "plan[ned] to complete the necessary design and engineering work to launch the implantation functionality by year-end." Restoration Robotics further represented that the company was well-positioned to grow its domestic business through increased sales, when in reality Restoration Robotics was not equipped with a sufficient salesforce to effectively grow the business in the U.S. By the end of the first quarter of 2018, the company admitted that it did "not have sufficient capital to fund its planned operations." Restoration Robotics' stock currently trades at only $3.26 per share—less than half the company's IPO price.
Restoration Robotics 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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