CASES
Stereotaxis, Inc.
Class Period: Feb 28, 2011 to Aug 9, 2011
Lead Plaintiff Deadline: Dec 9, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Stereotaxis, Inc. ("Stereotaxis" or the "Company") on behalf of all persons who purchased or otherwise acquired Stereotaxis securities between February 28, 2011 to August 09, 2011. This case has been filed in the USDC - Missouri (Eastern).
The complaint alleges that beginning on February 28, 2011, Chief Executive Officer Michael Kaminski, along with certain officers and directors at Stereotaxis, issued a series of positive statements to investors about the business condition and future prospects of the Company that were materially false and misleading, and that caused shares of the Company's stock to trade at artificially high prices.
In particular, the complaint alleges that officials at the Company failed to disclose to investors material adverse facts that: (1) Stereotaxis was unable to leverage its extensive portfolio and scale of products and services in a strategically beneficial manner; (2) market feedback from users of the Company's technology was "mixed"; (3) the Niobe system was far from the "standard of care" and needed "fundamental product improvements"; (4) demand for the Niobe and Odyssey systems was weak, and that the number of units being sold was decreasing; (5) the reported backlog of orders did not fairly represent future revenue the Company expected to recognize; and that (6) the Company overstated its market edge.
On August 8, 2011, the Company announced financial results for the second quarter of 2011 that revealed that the Company was performing well below expectations. Additionally, the press release disclosed to investors that the Company was forced to suspend its full year guidance for 2011, and that Daniel Johnston was resigning as the Chief Financial Officer. On this news shares of Stereotaxis declined by more than 58% of their value, closing on August 9, 2011 at just $1.19 per share.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.