Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of shareholders of Outset Medical, Inc. who purchased shares between September 15, 2020 and June 13, 2022.
Outset and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On May 5, 2022, the Company disclosed negative results for 1Q2022, which, among other things, analysts attributed to the untested nature of Tablo, its flagship product which is a dialysis machine that purifies tap water and then artificially purifies and removes toxins from the blood of patients suffering from kidney failure. On this news, shares of Outset fell more than 40% over the three trading days that followed, from a closing price of $39.94 per share on May 4, 2022, to a closing price of $23.06 per share on May 9, 2022.
Then, on June 13, 2022, the Company disclosed a hold on all shipments of Tablo for home use by the FDA until proper regulatory clearance was received. The Company subsequently disclosed that the “ship hold” had been in place for weeks before investors were informed and that as a result of the hold, the Company was “suspending our prior full-year and long-term guidance.”. On this news, shares of Outset fell another 33%, from a closing price of $20.41 per share on June 13, 2022, to a closing price of $13.46 per share on June 14, 2022.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until September 6, 2022 to request that the court appoint them lead plaintiff.