Cutera, Inc. is a medical aesthetics company, primarily offering laser skin treatment.

The original Complaint alleges that Cutera and certain officers and directors violated the federal securities laws by making false and misleading statements and omissions assuring the investing public that increased sales efforts and other corporate developments would lead to extraordinary growth in the first quarter of 2007, and for the entire year. Specifically, Cutera asserted on January 31, 2007 that these positive factors would lead to 25% revenue growth for the first quarter of 2007 and for the full year, 33% growth in net income for the first quarter of 2007, and 25% growth in net income for the full year. This announcement was followed shortly thereafter by unusually large stock sales by Cutera's CEO, Defendant Kevin P. Connors and Cutera's CFO, Defendant Robert J. Santilli. The Complaint alleges that CEO Connors has a history of making stock sales at high prices just prior to the release of adverse corporate news.

The Complaint further alleges that on April 5, 2007, Defendants shocked the market by announcing that revenues and earnings for the first quarter of 2007 would not increase 25%, as stated just weeks before, but rather would materially decrease. Defendants offered no cogent explanation for this reversal. On this news, Cutera shares dropped $11.72 per share on extraordinary trading volume of 7.2 million shares.

At a hearing held on November 2, 2007, the Court granted the motion to consolidate all related cases under Lead Case C07-02128 VRW. The Court further granted the motion to appoint the Onie group as lead Plaintiffs and approved Glancy Binkow & Goldberg LLP and Paskowitz & Associates as lead Counsel. On December 17, 2007, the Plaintiffs filed a Consolidated Amended Class Action Complaint, and on January 31, 2008, the Defendants responded by filing a motion to dismiss the Consolidated Amended Class Action Complaint. According to the Order dated September 30, 2008, Plaintiffs have failed to allege with particularity the reasons why Defendants’ disclosures were false or misleading and made with the requisite state of mind. The Complaint is therefore dismissed without prejudice. Plaintiffs may file an amended consolidated Complaint that fully comports with Rule 8’s requirement of a “short and plain statement of the claim” within thirty days of the date of this order and alleges that Defendants’ forward-looking statements were not accompanied by appropriate cautionary language.

On October 28, 2008, the lead Plaintiff filed a Notice of Intention not to File Second Amended Consolidated Complaint. On November 26, 2008, the Plaintiffs filed a Notice of Appeal in the U.S. Court of Appeals for the Ninth Circuit as to the order dismissing the action.

According to an article dated July 06, 2010, a federal appeals court has ruled that a lower court was right to toss a securities fraud class action against Cutera Inc. and its top executives over the collapse of the laser skin treatment company's stock in 2007. The U.S. Court of Appeals for the Ninth Circuit affirmed the lower court's dismissal of the lawsuit Wednesday.