Restoration Robotics (HAIR) Accused of Misrepresenting Its Prospects in its Offering Documents

According to the complaint, on October 13, 2017, Restoration Robotics (HAIR) held its IPO, offering 3,575,000 shares priced at $7.00 per share, raising $25 million in gross proceeds. Restoration Robotics told investors that the proceeds would fund the company's operations for a full year after the IPO and said that the company's robotic implantation functionality was ready to go. The truth would be revealed on March 20, 2018, when the company disclosed it "plan to complete the necessary design and engineering work to launch the implantation functionality by year-end." Restoration Robotics further represented that the company was well-positioned to grow its domestic business through increased sales, when in reality Restoration Robotics was not equipped with a sufficient salesforce to effectively grow the business in the U.S. By the end of the first quarter of 2018, the company admitted that it did "not have sufficient capital to fund its planned operations." Restoration Robotics' stock currently trades at only $3.26 per share—less than half the company's IPO price.

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