ROCK HILL, S.C. (Legal Newsline) - A 3D printing company is the subject of a securities class action lawsuit claiming the company misled investors about the business.
The City of Bristol Pension Fund filed its lawsuit against 3D Systems Corporation in the U.S. District Court for the District of South Carolina June 12. It claims the company failed to accurately portray its ability to increase the capacity of its metal printing business.
The lawsuit also alleges 3D Systems misled investors over the demand it had for consumer products, its earnings expectations and the value of the companies it was acquiring.
The company said in October 2013 it planned to triple the manufacturing capacity over the following 12 months. However, the lawsuit states the company had no way to prove that it could triple the printing capacity.
In July 2014, revenues for the company were below expectations and, as a result, stock fell 11 percent. The lawsuit claims the fall in stock price is due to the company's misleading statements.
The lawsuit is seeking class status for those who owned 3D Systems stock between Oct. 29, 2013 and Oct. 22, 2014.
The plaintiffs are represented by Chris Moore, Terry E. Richardson and Daniel Scott Haltiwanger of Richardson, Patrick, Westbrook & Brickman LLC in Barnwell, S.C.; Joseph P. Guglielmo, Donald A. Broggi and Thomas L. Laughlin of Scott+Scott, Attorneys at Law, LLP in New York City; and David R. Scott of the same law firm in Colchester, Conn.
U.S. District Court District of South Carolina Rock Hill Division case number 0:15-cv-02393