NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Merit Medical Systems, Inc. (“Merit” or the “Company”) (NASDAQ:MMSI) during the period from February 26, 2019 through October 30, 2019. Investors have until February 3, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Merit failed to disclose that: (i) the integrations of Cianna and Vascular Insights, including their products, sales people, and R&D facilities, had caused operational disruptions and reduced sales and were months behind schedule; and (ii) sales of acquired company products had slowed substantially due to pre-acquisition pipeline fill, in particular for Vascular Insights products which, as late as July 2019, had zero orders during fiscal 2019.
On July 25, 2019, Merit announced disappointing second quarter 2019 financial results and cut its fiscal 2019 sales and earnings per share outlook due in part to “slower than anticipated conversion and uptake of acquired products.” On this news, Merit’s stock price fell $13.84 per share, or 25.2%, to close at $41.00 on July 26, 2019.
Then, on October 30, 2019, the Company disappointing third quarter 2019 financial results, reduced fiscal 2019 guidance again, and entirely withdrew fiscal 2020 guidance. Merit attributed the results in part to their “own overestimation and forecasting.” On this news, Merit’s stock price fell $8.45 per share, or 29.0%, to close at $20.66 on October 31, 2019.
If you are a shareholder of Merit, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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