RM LAW, P.C. reminds investors of the upcoming March 16, 2021 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Penumbra Inc. (“Penumbra” or the “Company”) (NYSE; PEN) securities between August 3, 2020 and December 15, 2020, inclusive (the “Class Period”).
If you suffered a loss on your Penumbra investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information to RM LAW, P.C. (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 purchased or otherwise acquired Penumbra securities during the Class Period, you may move the Court no later than March 16, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact RM LAW, P.C. (Richard A. Maniskas, Esquire) toll-free at (844) 291-9299 or by email at email@example.com 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
RM LAW, P.C. is a national shareholder litigation firm. RM LAW P.C. is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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By PR Newswire