10.20.15
A shareholder class action lawsuit has been filed against Phoenixville, Pa.-based Globus Medical Inc., a medical device company that makes devices for patients with musculoskeletal disorders.
The Complaint alleges that Globus Medical and certain of its executive officers made a series of false and misleading statements between February 26 and August 5, 2014—the class period—and failed to disclose material adverse facts about the company's business, operations, and prospects. Specifically, the defendants are alleged to have made false and misleading statements and/or failed to disclose that: Globus Medical's relationship with a significant distributor was deteriorating; such deterioration was negatively impacting Globus Medical's financial performance; and as a result of the foregoing, defendants' statements about Globus Medical's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On August 5 last year, Globus Medical issued a press release announcing its financial and operational results for the second quarter of 2014, and lowering its revenue guidance for fiscal 2014. On this news, shares of the Company's common stock declined $4.05 per share, or 17.9 p[ercent, to close on August 6, 2014 at $18.51 per share.
The Complaint alleges that Globus Medical and certain of its executive officers made a series of false and misleading statements between February 26 and August 5, 2014—the class period—and failed to disclose material adverse facts about the company's business, operations, and prospects. Specifically, the defendants are alleged to have made false and misleading statements and/or failed to disclose that: Globus Medical's relationship with a significant distributor was deteriorating; such deterioration was negatively impacting Globus Medical's financial performance; and as a result of the foregoing, defendants' statements about Globus Medical's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On August 5 last year, Globus Medical issued a press release announcing its financial and operational results for the second quarter of 2014, and lowering its revenue guidance for fiscal 2014. On this news, shares of the Company's common stock declined $4.05 per share, or 17.9 p[ercent, to close on August 6, 2014 at $18.51 per share.