Legal Battle Unfolds
Recently, The Law Offices of Frank R. Cruz initiated a legal crusade against Outset Medical, Inc., culminating in a class action lawsuit filed in the United States District Court for the Northern District of California. The case, denoted as Porcelli v. Outset Medical, Inc., et al., Case No. 5:24-cv-06124, targets individuals and entities who purchased or acquired Outset Medical, Inc. securities (NASDAQ:OM) between August 1, 2022, and August 7, 2024.
Stock Drops and Investor Concerns
The lawsuit stems from a series of announcements that triggered significant stock volatility. Notably, on various occasions in 2023 and 2024, Outset Medical disclosed crucial information that sent shockwaves through the investment community.
On July 7, 2023, following the revelation of a Warning Letter from the FDA, Outset Medical experienced a downturn in stock price, falling by 5.9%.
Subsequently, on August 2, 2023, a press release from the company announcing a “Shipment Pause of TabloCart with Prefiltration Pending 510(k) Clearance” led to a 10.18% drop in stock value.
Further complications arose on October 12, 2023, when Outset Medical declared a substantial impact on revenue growth due to FDA’s warning letter, resulting in a staggering 49.9% depreciation in stock price.
The climax occurred on August 7, 2024, post the release of second-quarter 2024 financial results, revealing a failure to meet revenue estimates and downsizing the yearly revenue guidance by $39 million, plummeting the stock price by 68.53%.
Allegations of Misleading Statements
The lawsuit contends that throughout the Class Period, Outset Medical and its executives perpetrated misleading information regarding the Company’s products and financial status. Alleged failures include marketing products for unapproved treatments, a lack of necessary FDA clearance for certain products, and misleading statements about revenue projections.
Investor Actions and Legal Remedy
Investors impacted by these revelations are advised to act promptly if they wish to participate in the legal process. The window for taking legal action spans 60 days from the date of the announcement. Shareholders are encouraged to consider their options carefully and seek legal representation if necessary.
For those seeking further information or contemplating legal action, contacting The Law Offices of Frank R. Cruz is recommended. Individuals can reach out by phone at 310-914-5007, through email at info@frankcruzlaw.com, or by visiting the website directly.
Looking Ahead
As the legal battle unfolds, stakeholders await the outcome in this high-stakes confrontation. The ramifications of the lawsuit are likely to reverberate across the investment landscape, potentially reshaping investor perspectives on Outset Medical and its future prospects.
Contact:
Frank R. Cruz, The Law Offices of Frank R. Cruz
Phone: 310-914-5007
Email: info@frankcruzlaw.com
Website: www.frankcruzlaw.com
