Robbins LLP: The Spectranetics Corporation (SPNC) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a securities fraud class action complaint was filed in the U.S. District Court for the District of Colorado. The complaint alleges that officers and directors of The Spectranetics Corporation (NASDAQGS: SPNC) violated the Securities Exchange Act of 1934 between February 19 and July 23, 2015, by making materially false and misleading statements about Spectranetics’ business prospects. Spectranetics, together with its subsidiaries, develops, manufactures, markets, and distributes single-use medical devices used in minimally invasive procedures in the cardiovascular system.
Spectranetics Fails to Disclose Declining Competitive Position
According to the complaint, Spectranetics officials failed to disclose that the company was being negatively impacted by increasing competition and that its sales force optimization efforts were inadequate. Further, the complaint alleges that the company was performing below expectations and that it lacked adequate internal controls. These material misstatements and omissions created an unrealistically positive assessment of the company and its financial well-being, thus causing the company’s securities to be overvalued and artificially inflated.
On February 19, 2015, Spectranetics issued a press release, stating, “Our competitive position is stronger than ever and we believe it will continue to improve over time.” However, on April 23, 2015, the company reported disappointing earnings results and lowered its forecasts for the rest of the year, which it attributed to increased competition from other drug-coated balloon products. On this news, Spectranetics stock declined $8.18 per share, or over 23%, to close at $26.52 per share on April 24, 2015. Then, on July 23, 2015, the company lowered revenue guidance for the remainder of 2015 due to competitive pressure from the rapid adoption of drug-coated balloons. On this news, Spectranetics stock declined further by $8.53 per share, or over 34%, to close at $16.30 per share on July 24, 2015.
Spectranetics Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.