SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Central District of California on behalf of purchasers of STAAR Surgical Company (NASDAQ:STAA) common stock between February 26, 2020 and August 10, 2020 (the “Class Period”). The case is captioned Alwazzan v. STAAR Surgical Company, No. 20-cv-01533, and is assigned to Judge James V. Selna. The STAAR Surgical class action lawsuit charges STAAR Surgical and certain of its officers with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased STAAR Surgical common stock during the Class Period to seek appointment as lead plaintiff in the STAAR Surgical class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the STAAR Surgical class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the STAAR Surgical class action lawsuit. An investor’s ability to share in any potential future recovery of the STAAR Surgical class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the STAAR Surgical class action lawsuit or have questions concerning your rights regarding the STAAR Surgical class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the STAAR Surgical class action lawsuit must be filed with the court no later than October 19, 2020.
STAAR Surgical designs, develops, manufactures, and sells implantable lenses for the eye and companion delivery systems used to deliver the lenses into the eye.
The STAAR Surgical class action lawsuit alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that STAAR Surgical was overstating and/or mischaracterizing: (1) its sales and growth in China; (2) its marketing spend; and (3) its research and development expenses.
On August 5, 2020, STAAR Surgical reported that its net sales were down 11% from the prior year quarter and its implantable Collamer® lenses sales were down 11% from the prior year quarter. STAAR Surgical also reported a net loss of $0.03 per share, versus net income of $0.08 per share in the prior year quarter. On this news, STAAR Surgical’s common stock price fell nearly 10%.
Then, on August 11, 2020, analyst J Capital Research published a report in which it wrote that “[w]e think that STAAR Surgical has overstated sales in China by at least one-third, or $21.6 mln. That would mean that all of [STAAR Surgical]’s $14 mln in 2019 profit is fake.” The report continued, stating that “[f]ake sales [in China] come at 100% margins and therefore translate directly into profit. That means that the roughly $21.6 mln in overstated Chinese sales in 2019 represent 152% of total company profit. In other words, without the fraud that we believe pervades the China business, STAAR is losing money.” On this news, STAAR Surgical’s common stock price fell an additional 6% – further damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.