DENVER--(BUSINESS WIRE)--Shuman Glenn & Stecker announces that it is investigating potential shareholder claims against certain officers and directors of Merit Medical Systems, Inc. (“Merit” or the “Company”) (Nasdaq: MMSI). Merit manufactures and markets disposable medical devices for interventional, diagnostic, and therapeutic procedures in cardiology, radiology, oncology, critical care, and endoscopy.
The Firm’s investigation relates to allegations raised in a class action lawsuit filed against Merit and certain of its senior officers and directors. The complaint alleges that the defendants made false and misleading statements and/or failed to disclose that: (a) 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; (b) 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; and (c) in light of the foregoing, the Company’s reported financial guidance for fiscal 2019 and 2020 was made without a reasonable basis.
On July 25, 2019, Merit announced disappointing second quarter 2019 financial results and cut its fiscal 2019 sales and earnings per share outlook. Defendants attributed these reductions to a variety of factors, including "slower than anticipated conversion and uptake of acquired products." On this news, the Company’s stock price declined more than 25%. On October 30, 2019, the Company announced its third quarter 2019 financial results, reporting adjusted earnings per share well below consensus estimates, and slashed fiscal 2019 revenue and earnings per share guidance by 20% and withdrew any 2020 guidance. Following these disclosures, Merit’s stock price declined more than 29%, to close at $20.66 per share on October 31, 2019. Merit’s stock had traded at more than $62 per share as recently as April 8, 2019.
If you currently own Merit common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip Shuman toll free at (866) 569-4531 or email Mr. Shuman at firstname.lastname@example.org.
Shuman Glenn & Stecker represents investors throughout the nation, concentrating its practice in stockholder litigation.