Cutera, Inc. (CUTR) Misled Investors Regarding its Internal Controls Over Financial Reporting
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Cutera, Inc. (NASDAQ: CUTR) common stock between February 17, 2021 and May 9, 2023. Cutera is a medical aesthetic device company that provides equipment for beauty treatments.
According to the complaint, throughout the class period, defendants repeatedly assured investors that the Company would deliver sustainable revenue growth in the wake of the COVID-19 pandemic while concealing that the Company maintained inadequate internal control over financial reporting and significant conflicts among certain members of the Company’s senior leadership and board of directors (the “Board”).
Beginning on January 9, 2023, investors began to learn the truth. On that day, the Company announced its failure to meet revenue guidance for 2022. On February 28, 2023, Cutera disclosed its inability to timely file its annual financial report with the SEC and that it had identified material weaknesses in its internal control over financial reporting. On March 16, 2023, Cutera announced it would not meet the extended deadline to file its annual report. Then, on March 24, 2023, Cutera disclosed its non-compliance with Nasdaq Listing Rule 5250(c)(1). Beginning on April 7, 2023, the Company disclosed conflicts with Board members. Finally, on May 9, 2023, Cutera revealed disappointing financial results for the first quarter 2023 “due to execution challenges in the business.” Each disclosure resulted in a decline in Cutera’s stock price, which ultimately closed at $14.14 per share on May 11, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Cutera, Inc. Shareholders who want to act as lead plaintiff for the class must file their papers by July 24, 2023. 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. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.