RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Penumbra, Inc. ("Penumbra" or the "Company") (NYSE: PEN) securities during the period from August 3, 2020 through December 15, 2020, inclusive (the “Class Period”).
Penumbra shareholders may, no later than March 16, 2021, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Penumbra and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
The Penumbra class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Jet 7 Xtra Flex had known design defects that made it unsafe for its normal use; (2) that Penumbra did not adequately address the risk of the Jet 7 Xtra Flex causing serious injury and deaths, which had in fact already occurred; (3) that the Jet 7 Xtra Flex was likely to be recalled due to its safety issues; and (4) as a result, Penumbra’s public statements as set forth above were materially false and misleading at all relevant times.
On September 14, 2020, the Foundation for Financial Journalism (the "FFJ"), an independent non-profit news outlet, published an article raising serious questions about the Jet 7 Xtra Flex’s safety profile. The FFJ noted that since being introduced in mid-2019, there were twelve deaths listed in a U.S. Food and Drug Administration ("FDA") database that occurred after a surgeon injected an iodine contrast dye into the Jet 7 Xtra Flex. The FFJ article also described how Penumbra’s warnings against using the product with contrast dye and non-Penumbra products did little to address the Jet 7 Xtra Flex’s safety issues. In response, Penumbra’s stock price fell.
Then, on November 23, 2020, an article was published in the Journal of NeuroInterventional Surgery presenting the cases of three patients who suffered as a result of Jet 7 Xtra Flex device malfunctions, including two fatalities. As this report became more widely circulated, it caused Penumbra’s stock price to fall approximately 12% from November 23, 2020 to November 25, 2020.
Thereafter, on December 8, 2020, the securities research firm Quintessential Capital Management issued a report questioning the validity and independence of the scientific research supporting the Jet 7 Xtra Flex’s safety, and accusing Penumbra of using a fake author to publish studies regarding the purported safety and efficacy of its products. In response, Penumbra’s stock price fell an additional 9%.
Finally, on December 15, 2020, Penumbra issued a press release announcing that it was issuing an "urgent" recall of the Jet 7 Xtra Flex because the catheter "may become susceptible to distal tip damage during use" which could lead to injury or death. On a conference call held the same day, Penumbra’s CEO acknowledged that the product’s design "ma[de] the catheter susceptible to failure in certain scenarios" and that Penumbra’s "steps to ensure the safe use of the product . . . were not able to fully address the risks." In response, Penumbra’s stock price fell 7%, further damaging investors.
If you are a member of the class, you may, no later than March 16, 2021, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action. For more information regarding this, please contact RM LAW, P.C. (Richard A. Maniskas, Esquire) toll-free at (844) 291-9299 or by email at firstname.lastname@example.org or click here. For more information about class action cases in general or to learn more about RM LAW, P.C. please visit our website by clicking here.