NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of investors that purchased STAAR Surgical Company (NASDAQ: STAA) common stock between February 26, 2020 and August 10, 2020 (the “Class Period”). Investors have until October 19, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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STAAR designs, develops, manufactures, and sells implantable lenses for the eye and companion delivery systems used to deliver the lenses into the eye. STAAR’s primary products are: (1) “implantable Collamer® lenses,” or “ICLs,” used in refractive surgery; and (2) intraocular lenses, or “IOLs,” used in cataract surgery.
On August 5, 2020, after the markets closed, STAAR announced its financial results for the quarter ended July 3, 2020, reporting a net loss of $0.03 per share, versus net income of $0.08 per share in the prior year quarter, among other things.
On this news, the company’s share price dropped approximately 10%, from a closing share price of $61.81 on August 5, 2020, to a close on August 6, 2020 at $55.86.
On August 11, 2020, analyst J Capital Research Limited published a report stating that “[w]e think STAAR Surgical has overstated sales in China by at least one-third, or $21.6 mln. That would mean that all of the company’s $14 mln in 2019 profit is fake.” J Capital stated that the report was based on “over 75 interviews,” as well as visits to STAAR locations in China and Switzerland.
On this news, STAAR’s stock price sharply declined, closing at $48.25 on August 11, 2020, down approximately 6.2% from its August 10, 2020 closing price of $51.42.
The complaint, filed on August 19, 2020, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts to investors. Specifically, defendants misrepresented and/or failed to disclose to investors that the Company was overstating and/or mischaracterizing: (1) its sales and growth in China; (2) its marketing spend; (3) its research and development expenses; and that as a result of the foregoing, (4) defendants’ public statements were materially false and misleading at all relevant times.
If you purchased STAAR common stock during the Class Period, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.