Plaintiff's law firm issued a press release on August 23, 2018. According to the press release, Nevro is a global medical device company focused on providing treatment for patients suffering from debilitating chronic pain. Nevro's primary products are its Senza spinal cord stimulation systems, neuromodulation devices that deliver the Company's HF10 therapy.
The Complaint asserts claims for violations of the Securities Exchange Act of 1934. The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and the proprietary nature of the Company's principal products.
Specifically, Defendants allegedly made false and/or misleading statements and/or failed to disclose that: (1) that Nevro had engaged in a fraudulent scheme by using protected confidential and proprietary trade secrets and stolen documents from its competitors to develop and enhance the Company's Senza systems; (2) that as a result, the Company's Senza systems were not "novel" or "proprietary;" (3) that these practices caused the Company to be vulnerable to increased litigation expenses and adverse legal and regulatory action; (4) that, as a result, Nevro's U.S. sales growth was not sustainable; and (5) that, as a result of the foregoing, Defendants' statements about Nevro's business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
On December 20, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel. On January 16, 2019, the Court issued an Order relating cases. Lead Plaintiff filed an amended Complaint on January 18. Defendants filed a Motion to Dismiss the amended Complaint on February 15. On August 1, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint.