New York, New York--(Newsfile Corp. - January 13, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Merit Medical Systems, Inc. ("Merit Medical" or the "Company") (NASDAQ: MMSI) of the February 3, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in Merit Medical stock or options between February 26, 2019 and October 30, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/MMSI. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Merit Medical common stock between February 26, 2019 and October 30, 2019 (the "Class Period"). The case, Bucks County Employees Retirement Fund v. Merit Medical Systems, Inc. et al., No. 19-cv-02326 was filed on December 3, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the integrations of Cianna and Vascular Insights, including their products, sales people, and R&D facilities, were causing operational disruptions and reduced sales and were months behind schedule; (2) 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 FY19; and (3) in light of the foregoing, the Company's reported financial guidance for FY19 and FY20 was made without a reasonable basis.
On July 26, 2019, Morningstar issued an analyst report, titled "Merit's 2Q Miss Poised to Reset Investor Expectations; Reiterate Our Overvalued Call," which noted that while the FY20 growth forecast was maintained, it was based on a smaller base and thus was actually a reduction.
On this news, the Company's stock price fell from $54.84 per share on July 25, 2019 to $41.00 per share on July 26, 2019: a $13.84 or 25.24% drop.
Then, on October 30, 2019, Piper Jaffray issued an analyst report on Merit, titled "Another Shoe Drops Here in Q3; Sticking with OW," which discussed the "Disappointing Q3 Results," which were primarily attributable to the Company's acquisitions, and reduced its price target to $30.00 from $40.00.
On this news, the Company's stock price fell from $29.11 per share on October 30, 2019 to $20.66 per share on October 31, 2019: an $8.45 or 20.03% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Merit Medical's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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