On November 10, 2015, Pomerantz LLP was appointed Lead Counsel in a class action lawsuit against ConforMIS, Inc. ("ConforMIS" or the "Company") and certain of its officers. The class action, filed in the United States District Court, District of Massachusetts, and docketed under 15-cv-13295, is on behalf of a class consisting of all persons or entities who purchased ConforMIS securities: (1) pursuant and/or traceable to the Company's Registration Statement and Prospectus (defined below) issued in connection with the Company's initial public offering on or about July 1, 2015 (the "IPO" or the "Offering"); and/or (2) on the open market between July 1, 2015 and August 28, 2015, both dates inclusive (the "Class Period"). This class action seeks to recover damages against ConforMIS for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act") and the Securities Act of 1933 (the "Securities Act").
ConforMIS, Inc., a medical technology company, develops, manufactures, and sells customized joint replacement implants. The company offers customized knee replacement products, including iTotal CR, a cruciate-retaining product; iTotal PS, a posterior cruciate ligament substituting product; iUni G2, a unicompartmental product for treatment of the medial or lateral compartment of the knee; and iDuo G2, a bicompartmental partial implant for patients with osteoarthritis of the patellofemoral compartment of the knee and either the medial or lateral compartment of the knee, as well as provides iJigs, customized single-use patient-specific instruments. It is also developing iTotal Hip, a customized total hip replacement implant. The company markets and sells its products through direct sales force, independent sales representatives, and distributors in the United States, Austria, Germany, Ireland, the United Kingdom, Switzerland, Hong Kong, and Singapore. ConforMIS, Inc was founded in 2004 and is headquartered in Bedford, Massachusetts.
The complaint alleges that throughout the Class Period, ConforMIS made false and/or misleading statements regarding the Company's business, operational and compliance policies both in connection with its IPO and in subsequent filings with the SEC. Specifically, ConforMIS made false and/or misleading statements and/or failed to disclose that: (i) the Company's manufacturing processes were flawed; (ii) that as a result of the flaws in the Company's manufacturing process, a number of the Company's knee replacement product systems were defective; and (iii) as a result of the foregoing, ConforMIS's public statements were materially false and misleading at all relevant times.
On August 31, 2015, pre-market, the Company announced that it had initiated a voluntary recall of specific serial numbers of patient-specific instrumentation for certain of its knee replacement product systems, in response to recent complaints of moisture on the patient-specific instrumentation. A total of approximately 950 patient-specific instrumentation sets were affected by ConforMIS's recall.
On this news, the Company's stock dropped $3.78, or 19.11%, to close at $16.00 on August 31, 2015. At the close of trading on September 2, 2015, the Company's share price closed at $14.18 per share.