Case Update: This case has been settled for a total of $10.9 million.
Pomerantz LLP announces that a class action lawsuit has been filed against Sientra, Inc. (“Sientra” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Central District of California, and docketed under 15-cv-07548, is on behalf of a class consisting of all persons or entities who purchased Sientra securities between March 18, 2015 and September 24, 2015 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
Sientra is a medical aesthetics company that develops and sells medical aesthetics products to plastic surgeons. Sientra offers silicone gel breast implants for use in breast augmentation and breast reconstruction procedures, as well as breast tissue expanders. Sientra also provides body contouring and other implants, including gluteal, pectoral, calf, facial, and nasal implants.
The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Sientra’s exclusive reliance on Silimed’s Brazilian manufacturing facilities carried significant quality control risks; (ii) the manufacturing processes at the Silimed Rio de Janeiro manufacturing plant were contaminated; and (iii) as a result of the above, the Company’s statements regarding quality control and other financial statements were materially false and misleading at all relevant times.
On September 24, 2015, it was announced that the United Kingdom’s Medicines and Healthcare Products Regulatory Agency had suspended sales of Silimed products after an audit of Silimed’s manufacturing processes revealed contamination in Silimed’s Rio de Janeiro manufacturing plant.
On this news, shares of Sientra fell $10.88, or nearly 52.9%, to close at $9.70 on September 24, 2015.