SAN DIEGO--(BUSINESS WIRE)--Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Danaher Corporation (NYSE: DHR) securities between April 21, 2022 and April 24, 2023. Danaher designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide.
What is this Case About: Danaher Corporation (DHR) Misled Investors Regarding Revenue Growth Associated with the Company's COVID-19-related Businesses
According to the complaint, in 2020 and 2021, Danaher’s diagnostic tests and life sciences research tools were widely used in the effort to combat the COVID-19 virus. As a result, Danaher experienced a significant upswing in both revenue growth over the course of this period.
However, during the class period, defendants failed to disclose that: (i) as the severity of the COVID-19 pandemic subsided, revenue growth associated with Danaher’s COVID-19-related businesses was declining; (ii) contrary to the Company’s prior representations to investors, revenues associated with Danaher’s non-COVID-19-related businesses were insufficient to compensate for the foregoing negative trend; (iii) accordingly, Danaher overstated the Company’s ability to sustain the growth it had experienced in 2020 and 2021; and (iv) as a result, it was unlikely that Danaher would be able to meet its 2023 revenue forecasts.
On April 25, 2023, Danaher announced its financial results for the first quarter of 2023. Among other items, Danaher reported that “[r]evenues decreased 7.0% year-over-year to $7.2 billion, with a 4.0% non-GAAP core revenue decrease, due to the impact of lower COVID-19 revenue, and 6.0% non-GAAP base business core revenue growth.” The Company also projected that “[f]or the second quarter and full year 2023, . . . non-GAAP base business core revenue growth will be up mid-single digits year-over-year,” down from an earlier projection of high-single-digit growth. Notably, this announcement appeared to be at odds with Danaher’s prior reassurances that revenues associated with the Company’s non-COVID-19-related businesses would compensate for the foregoing negative results. On this news, Danaher’s stock price fell $22.36 per share, or 8.79%, to close at $231.99 per share on April 25, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Danaher Corporation. Shareholders who want to act as lead plaintiff for the class must file their motion with the court by September 15, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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