Tandem Diabetes Care, Inc. (TNDM) Misled Investors Regarding Revenue Projections
A shareholder filed a class action on behalf of all investors who purchased or otherwise acquired Tandem Diabetes Care, Inc. (NASDAQ: TNDM) securities between August 3, 2022 and November 2, 2022. Tandem is a global medical technology company that develops, manufactures, and markets a variety of consumer technologies and software for at-home diabetes care.
According to the complaint, defendants provided investors with material information concerning Tandem’s projected revenue and sales for the year ending 2022. Specifically, on August 2, 2022, Tandem estimated annual sales “to be in the range of $835 million to $845 million, which represents an annual growth of 19 percent to 20 percent compared to 2021.” Defendants provided these statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts, which caused shareholders to purchase Tandem’s securities at artificially inflated prices.
The truth emerged on November 2, 2022 when Tandem, in an investment call and Form 8-K filing, revised its 2022 forecast downward to $800 to $805 million. Reasons stated for the scale back included increased competition in the diabetes care sector, complications due to the COVID pandemic, and macroeconomic factors such as inflation. On this news, the price of Tandem’s common stock declined over 30%, from $51.34 on November 2, 2022, to $35.72 on November 3, 2022.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Tandem Diabetes Care, Inc. Shareholders who want to act as lead plaintiff for the class must file their motion for lead plaintiff by November 7, 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.
