According to the law firm press release, Spectranetics develops, manufactures, markets and distributes medical devices used in minimally invasive procedures within the cardiovascular system. The Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose to investors that: (1) the Company was being negatively impacted by increasing competition; (2) that the Company’s sales force optimization efforts were inadequate; (3) that, as a result, the Company was performing below expectations; (4) that the Company lacked adequate internal controls; and (5) that, as a result of the foregoing, Defendants’ statements about Spectranetics’s business, operations and prospects were false and misleading and/or lacked a reasonable basis.
On April 23, 2015, the Company reported disappointing earnings results and lowered its forecast for the rest of the year. The Company attributed much of the lowered forecast to increased competition from other drug-coated balloon products. Following this news, shares of Spectranetics declined $8.18 per share, over 23%, to close on April 24, 2015, at $26.52 per share, on unusually heavy volume.
On July 23, 2015, the Company lowered revenue guidance for the remainder of 2015. According to the Company, competitive pressure from the rapid adoption of drug-coated balloons and ongoing sales force optimization efforts were causing its AngioSculpt franchise to perform below expectations. On this news, shares of Spectranetics declined $8.53 per share, over 34%, to close on July 24, 2015, at $16.30 per share, on unusually heavy volume.
Plaintiffs filed an amended complaint on March 1, 2016.