LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz is investigating potential claims against the board of directors of Merit Medical Systems, Inc. (“Merit” or the “Company”) (NASDAQ: MMSI) concerning whether the board breached its fiduciary duties to shareholders.
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On July 25, 2019, Merit announced disappointing second quarter 2019 financial results and cut its sales and earnings guidance for fiscal 2019 due to “slower than anticipated conversion and uptake of acquired products.”
Then, on October 30, 2019, the Company announced its third quarter 2019 financial results and lowered its sales and earnings guidance for fiscal 2019 by 20%. Merit reported significant operational issues which were due to the Company’s “own overestimation and forecasting.” On this news, Merit’s stock price fell $8.45 per share, or more than 29%, to close at $20.66 per share on October 31, 2019.
On March 29, 2021, Judge David O. Carter of the United States District Court for the Central District of California denied the defendants' motion to dismiss and held that plaintiffs in the securities class action had adequately alleged violations of the Securities Exchange Act of 1934 for statements issued between February 26, 2019 and October 30, 2019, regarding the integration of acquired companies, its product pipeline, and its prospects and financial guidance.
Our investigation concerns whether the Company’s board of directors breached its fiduciary duties to shareholders and/or grossly mismanaged the Company in connection with the above alleged misconduct.
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If you still hold Merit shares purchased before February 2019 and wish to discuss this matter with us, or have any questions concerning your rights and interests with regards to this matter, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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