BALA CYNWYD, PA / ACCESSWIRE / December 26, 2019 / Law office of Brodsky & Smith, LLC reminds investors of the deadline to file regarding claims against Merit Medical Systems, Inc. ("Merit Medical" or the "Company") (NASDAQ:MMSI) for possible breaches of Federal Securities law.
The Class Period commences on February 26, 2019, when Merit Medical reported fourth quarter 2018 and fiscal year 2018 results and established financial guidance for 2019, including core revenue growth of 8%-10%.
According to the filed complaint, Merit Medical is a leading manufacturer and marketer of proprietary disposable medical devices used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. During 2018, Merit Medical acquired three companies. Specifically, in February 2018, the Company completed the acquisition of Becton, Dickinson and Company and on November 13, 2018, the Company completed the acquisition of Cianna Medical, Inc. ("Cianna"), which makes products for the treatment of breast cancer, for up to $200 million, making it Merit Medical's largest-ever acquisition. Thereafter, in December 2018, the Company completed its acquisition of Vascular Insights, LLC ("Vascular Insights"), and acquired its ClariVein product, for up to $60 million.
On October 30, 2019, after the market closed, Merit Medical issued a press release announcing its third quarter 2019 financial results, reporting non-GAAP EPS of $0.28, well below consensus estimates of $0.45, reducing fiscal year 2019 guidance, and completely withdrawing fiscal year 2020 guidance. Following this news, the Company's stock price declined more than 29%, from a close of $29.11 per share on October 30, 2019 to a close of $20.66 per share on October 31, 2019.
The filed complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (a) the integrations of Cianna and Vascular Insights, including their products, salespeople, and R&D facilities, had caused operational disruptions and reduced sales and were months behind schedule; (b) 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 fiscal year 2019; and (c) in light of the foregoing, the Company's reported financial guidance for fiscal 2019 and 2020 was made without a reasonable basis.
If you purchased shares of Merit Medical between February 26, 2019 and October 30, 2019 and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. The deadline for filing is February 3, 2020. You may contact Marc Ackerman, Esquire or Jordan Schatz, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 510, Bala Cynwyd, PA 19004, by visiting http://www.brodskysmith.com/?post_type=cases&p=13407&preview=true, or by calling toll free 877-534-2590.
Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.
SOURCE: Brodsky & Smith, LLC
ReleaseID: 571242
