Acutus Medical, Inc. (AFIB) Misstated its Business Prospects
A shareholder filed a class action on behalf of purchasers of Acutus Medical, Inc. (NASDAQ: AFIB) common stock between May 13, 2021 and November 11, 2021, for violations of the Securities Exchange Act of 1934. Acutus is an arrhythmia management company focused on improving the diagnosis and treatment of cardiac arrhythmias. Its primary product is its AcQMap imaging and mapping system, which collects the data required to create a comprehensive map of a patient’s cardiac anatomy and electrical propagation pathways and patterns.
According to the complaint, during the class period, defendants misrepresented: (i) their ability to grow and scale Acutus’ business; (ii) Acutus’ strategy regarding AcQMap system placements; and (iii) the ability of Acutus to improve commercial execution in the U.S., including through the expansion and training of sales staff to “ensure” adequate customer account support, which defendants claimed would be a major growth driver.
As of March 30, 2021, Acutus had accumulated a deficit totaling $390.2 million. To obtain the capital to support its operations and fund growth and development, Acutus conducted a secondary public offering, raising over $88 million. Then, on November 11, 2021, Acutus announced it had slashed its 2021 revenue guidance due, in part, to a strategic decision to relocate approximately 20% of AcQMap system installations under then-existing evaluation arrangements in order to address lower-than-expected product adoption. The Company also announced the need to relocate AcQMap systems that had been placed in improper locations, thereby negatively impacting customer uptake. On this news, the price of Acutus common stock plummeted more than 45% in a single day, closing at $3.64 per share on November 12, 2021. By January 28, 2022, the price of Acutus closed at less than $2 per share, 85% below the secondary offering price just six months before.
Next Steps: If you purchased shares of Acutus Medical, Inc. (AFIB) between May 13, 2021 and November 11, 2021, you have until April 18, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.