Philadelphia, Pennsylvania--(Newsfile Corp. - December 30, 2024) - Current Cutera, Inc. (NASDAQ: CUTR) shareholders who have held shares Cutera stock since on or before March 1, 2022, can seek corporate reforms, the return of funds back to the company, and a court approved incentive award if appropriate, at no cost to them whatsoever. You are encouraged to click here to learn more: https://grabarlaw.com/the-latest/cutera-shareholder-investigation/.
Grabar Law Office is investigating whether certain officers and directors of Cutera have breached their fiduciary duties owed to the company.
WHY: According to an underlying securities fraud class action complaint, certain officers and directors of Cutera failed to monitor and maintain inventory and implement effective internal controls, while simultaneously rushing and failing to roll out Cutera's new acne-treating laser device, AviClear. It is alleged that the true primary motivation for the AviClear rollout was an executive compensation plan-known internally as the "Acne Equity Grant"—that shunted Company stock to the Individual Defendants in direct relation to (i) the number of AviClear devices placed with customers, and (ii) the speed with which such placements occurred.
It is further alleged that notwithstanding Defendants' SOX certifications and other positive remarks about Cutera's internal control environment, Cutera and its officers and directors consistently failed to control, monitor, and maintain inventory, largely related to problems associated with the failed AviClear rollout.
The undisclosed failures of instilling adequate internal controls ultimately required Cutera to restate its financial statements for multiple quarters as pertains to financials relating to inventory, cost of revenue, gross profit, gross margin, and operating loss. In fact, Defendants eventually admitted that "we identified a significant issue with how the company has been managing inventory during 2023," and "there was a shortfall of inventory relative to the Company's system of record." As Defendants themselves conceded, Cutera was managed by "suboptimal leadership."
WHAT YOU CAN DO:If you have held Cutera shares since prior to March 1, 2022 and would like to learn more at no cost to you, please visit https://grabarlaw.com/the-latest/cutera-shareholder-investigation/ or contact Joshua Grabar at jgrabar@grabarlaw.com or Mia Heller at mheller@grabarlaw.com, or call us at 267-507-6085.
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