Desktop Metal, Inc. (DM) Failed to Disclose Deficiencies in EnvisionTEC’s Manufacturing and Product Compliance Practices and Procedures
A class action was filed on behalf of all persons and entities that purchased or otherwise acquired Desktop Metal, Inc. (NYSE: DM) securities between March 15, 2021 and November 15, 2021. The complaint alleges violations of the Securities Exchange Act of 1934. Desktop Metal purports to offer additive manufacturing technologies focused on the production of end use parts. The Company acquired EnvisionTEC, Inc. and certain of its affiliates, a provider of volume production photopolymer 3D printing solutions for end use parts, on February 16, 2021.
According to the complaint, on November 8, 2021, Desktop Metal disclosed that it was conducting an internal investigation into certain matters, including “manufacturing and product compliance practices and procedures with respect to a subset of its photopolymer equipment and materials at its EnvisionTec US LLC facility.” The Company also disclosed that the Chief Executive Officer of EnvisionTec US LLC had resigned. On this news, the Company’s stock price fell 4%.
Then, on November 16, 2021, the Company stated it would notify the U.S. Food and Drug Administration of “compliance issues with certain shipments of EnvisionTEC’s Flexcera dental resins and its PCA4000 curing box.” On this news, the Company’s stock price fell 15%, to close at $6.83 per share on November 16, 2021.
If you purchased shares of Desktop Metals, Inc. (DM) between March 15, 2021 and November 15, 2021, you have until February 21, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.