A recent class action lawsuit has been filed against Outset Medical, Inc. (NASDAQ:OM) by Glancy Prongay & Murray LLP, alleging securities fraud. The lawsuit, filed in the United States District Court for the Northern District of California, accuses Outset Medical of misleading investors during a specific period. Investors are urged to take action within 60 days of this notice if they wish to pursue claims as lead plaintiff.
FDA Warnings Impact Stock Price
On several occasions, Outset Medical faced significant setbacks that led to a sharp decline in its stock price. The company received a Warning Letter from the FDA regarding certain materials promoting therapies beyond approved indications. This news caused Outset Medical’s stock to drop by 5.9%. Subsequent announcements of shipment pauses and revenue impacts due to FDA warnings further worsened the situation.
Financial Results Miss Estimates
In a notable event, Outset Medical disclosed disappointing second-quarter financial results in 2024, missing consensus estimates and reducing its full-year revenue guidance substantially. This unfortunate news resulted in a drastic 68.53% drop in the company’s share price, signaling a challenging road ahead for the medical technology firm.
Allegations of Misleading Statements
The class action complaint alleges that Outset Medical and its executives made false statements and failed to disclose critical information about the company’s operations. Investors were reportedly kept in the dark about the marketing of Tablo products for unapproved therapies, risks associated with sales halts pending FDA approvals, and the shortcomings in the company’s sales strategies.
Seeking Legal Recourse
If you purchased Outset Medical securities during the affected period, you may have the opportunity to participate in the class action lawsuit. Contact Glancy Prongay & Murray LLP within 60 days of this notice to explore your legal options. Failure to take action may result in forfeiting your rights in this case.
