SAN FRANCISCO (Legal Newsline) – A stock owner of a Redwood City, California medical device manufacturer has filed a potential class action against the company over allegations it suffered significant losses because of a fall in stock prices.
Oklahoma Police Pension and Retirement System filed a complaint individually and on behalf of all others similarly situated on Aug. 23 in the U.S. District Court for the Northern District of California against Nevro Corp., Rami Elghandour and Andrew Galligan alleging violation of federal securities laws.
According to the complaint, the plaintiff is filing the suit on behalf of those who purchased Nevro common stock from Jan. 8 to July 12. The plaintiff alleges Nevro's stock dropped in April when Boston Scientific Corp. filed a lawsuit against it over allegations of patent infringement and again in May when its announced first quarter results "fell drastically short of estimates."
The plaintiff alleges that in less than three months, nearly half of Nevro's market capitalization was "wiped out," totaling near $1.3 billion.
The plaintiff holds Nevro Corp., Elghandour and Galligan responsible because the defendants allegedly made materially false and misleading statements and failed to disclose material adverse facts about the company's business.
The plaintiff requests a trial by jury and seeks judgment against defendants, declare the action as a class action, award damages, interest, attorneys’ and experts’ witness fees, other costs, and other relief as the court deems appropriate. It is represented by David R. Stickney of Bernstein Litowitz Berger & Grossman LLP in San Diego; Avi Josefson of Bernstein Litowitz Berger & Grossman LLP in New York; and Maya Saxena, Joseph E. White III and Lester R. Hooker of Saxena White PA in Boca Raton, Florida.
U.S. District Court for the Northern District of California case number 4:18-cv-05181