Zeltiq Misled Investors in IPO
Statements, Shareholders Say
Zeltiq Misled Investors in IPO
Statements, Shareholders Say
(CN) - Shareholders of Zeltiq Aesthetics filed a class action against the company alleging that high ranking company officials made misleading statements to the SEC when it filed its IPO prospectus and registration statement.
Lead Plaintiff Ivan Marcano named president and CEO Gordon Nye and CFO and senior vice president John Howe as well as six directors as defendants. Based in Pleasanton, Calif., Zeltiq "is a medical technology company which engages in developing and commercializing non-invasive products for selective reduction of fat."
The firm's registration statement allegedly failed to mention that the company was about to make a transition to direct sales in key international markets and that the company's business during the fourth quarter would be affected by seasonal trends that would negatively impact its financial performance.
The action was prompted by an announcement on March 6 that the company had lost $5.8 million, or $0.22 per share, in the fourth fiscal quarter, as well as a press release that indicated that the company would be lowering its guidance forecast.
According to the complaint, the company's press release included the statement "During the fourth quarter, we initiated our transition to direct sales in certain international markets, which delayed certain system sales in these markets,
which along with a report by JP Morgan commenting on the same business forecasting error, led to the company's stock price dropping by 43.38% or from $13 a share to $5.64.
The company's original IPO filing claimed that it expected the fourth quarter to be a strong revenue quarter "because of our internal plan to continue to release our new product line/enhancements in this quarter beginning in 2012 and because physicians in the United States historically make capital equipment purchases" at this time, the complaint states.
Marcano is represented by Lionel Z. Glancy, Michael Goldberg, Robert V. Prongay and Casey E. Sadler of Glancy Binkow & Goldberg of Los Angeles and Howard G. Smith of Bensalem, Penn.
Copyright Courthouse News Service 2012.
http://www.cnssecuritieslaw.com/2012/03/18/258.htm
Lead Plaintiff Ivan Marcano named president and CEO Gordon Nye and CFO and senior vice president John Howe as well as six directors as defendants. Based in Pleasanton, Calif., Zeltiq "is a medical technology company which engages in developing and commercializing non-invasive products for selective reduction of fat."
The firm's registration statement allegedly failed to mention that the company was about to make a transition to direct sales in key international markets and that the company's business during the fourth quarter would be affected by seasonal trends that would negatively impact its financial performance.
The action was prompted by an announcement on March 6 that the company had lost $5.8 million, or $0.22 per share, in the fourth fiscal quarter, as well as a press release that indicated that the company would be lowering its guidance forecast.
According to the complaint, the company's press release included the statement "During the fourth quarter, we initiated our transition to direct sales in certain international markets, which delayed certain system sales in these markets,
which along with a report by JP Morgan commenting on the same business forecasting error, led to the company's stock price dropping by 43.38% or from $13 a share to $5.64.
The company's original IPO filing claimed that it expected the fourth quarter to be a strong revenue quarter "because of our internal plan to continue to release our new product line/enhancements in this quarter beginning in 2012 and because physicians in the United States historically make capital equipment purchases" at this time, the complaint states.
Marcano is represented by Lionel Z. Glancy, Michael Goldberg, Robert V. Prongay and Casey E. Sadler of Glancy Binkow & Goldberg of Los Angeles and Howard G. Smith of Bensalem, Penn.
Copyright Courthouse News Service 2012.
http://www.cnssecuritieslaw.com/2012/03/18/258.htm
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