SAN DIEGO & SOUTH JORDAN, Utah--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP informs investors that a purchaser of Merit Medical Systems, Inc. (NASDAQ: MMSI) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between February 26, 2019 and October 30, 2019. Merit manufactures and markets disposable medical devices for interventional, diagnostic, and therapeutics.
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Merit Medical Systems, Inc. (MMSI) Accused of Misleading Shareholders
According to the complaint, in 2018, Merit acquired Becton, Dickinson and Company, Cianna Medical, Inc., and Vascular Insights, LLC for a total of $360 million. In February 2019, Merit touted fourth quarter 2018 and fiscal year 2018 results with revenue growth of 8-10% and forecasted net sales of $1.011 billion to $1.030 billion for fiscal year 2019 ("FY19"). Merit also assured it was successfully integrating its acquired companies, its product pipeline was full, and expenses were being kept under tight control. In April 2019, Merit reported first quarter 2019 results that had "met and exceeded [its] expectations" and reaffirmed its FY19 guidance. However, in July 2019, Merit's second quarter 2019 financial results fell short of analyst expectations and the Company cut its FY19 sales outlook to $1.007-1.029 billion, citing "slower than expected uptake of acquired products" that were "short term" issues. Then, on October 30, 2019, Merit reported third quarter 2019 results, slashing its FY19 revenue guidance by 20% and reporting significant operational issues in all aspects of its business, many of which were due to defendants' "own overestimation and forecasting." Following these disclosures, Merit's stock declined a staggering 62% to close at $20.66 per share.
Merit Medical Systems, Inc. (MMSI) Shareholders Have Legal Options
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