According to the Complaint filed on July 7, 2011, the plaintiffs allege that the defendant disseminated false and misleading information regarding the clinical studies, and the safety and efficacy of the company’s product. These statements concerned (a) the defendant’s operations, management, business prospects and the intrinsic value of the company’s common stock; (b) the safety and efficacy of Augment and the company’s prospects for FDA approval; and (c) the woeful inadequacies of clinical trials. Subsequently, after a narrow vote by the FDA's Orthopedic and Rehabilitation Devices Panel of the Medical Devices Advisory Committee, the defendant’s share’s declined nearly 12%.
Based on these allegations, the plaintiffs brought suit for violations of Sections 10(b) and 20(a) of the Exchange act and Rule 10b-5.
On July 15, 2011, the Court issued an order reassigning the case to Judge Kevin H. Sharp and releasing Judge William J. Hayes, Jr. from any further proceedings.
On September 26, 2011, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel. On November 28, 2011, lead plaintiff filed a consolidated and amended complaint.
On January 10, 2013, the Court granted the motion of the Defendants to dismiss the securities class action lawsuit that had been filed against the company over its disclosures concerning developments in the clinical trials of its flagship product.
On April 30, 2013, the Court issued an Order denying Plaintiffs' Motion to Alter or Amend the Order and Judgment of Dismissal with Prejudice. On May 1, the Plaintiffs filed a Notice appealing this decision and the earlier Order dismissing this case.
On March 28, 2014, The Appellate Court entered an opinion together with the judgment affirming the District Court’s decision, which has been entered in conformity with Rule 36, Federal Rules of Appellate Procedure.