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Kessler Topaz Meltzer & Check, LLP: Investor Class Action Filed Against Merit Medical Systems, Inc. for Securities Fraud Violations

Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired Merit Medical Systems, Inc. (“Merit”) (Nasdaq: MMSI) common stock between February 26, 2019 and October 30, 2019, inclusive (the “Class Period”).

Merit investors may receive additional information about the case by clicking the link "Submit Your Information" above.


According to the complaint, Merit is a leading manufacturer and marketer of proprietary disposable medical devices used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. Merit conducts business through two financial reporting segments: cardiovascular (which includes peripheral intervention, cardiac intervention, interventional oncology and spine, cardiovascular and critical care, and breast cancer localization and guidance product groups) and endoscopy.  During 2018, Merit acquired three companies. Specifically, on February 21, 2018, Merit completed the acquisition of Becton, Dickinson and Company for up to $100 million. On November 13, 2018, Merit completed the acquisition of Aliso Viejo, California, based Cianna Medical, Inc. (“Cianna”), which makes products for the treatment of breast cancer, for up to $200 million, making it Merit’s largest-ever acquisition. Following the acquisition, Cianna became a wholly owned subsidiary and Merit retained virtually all of its commercial sales and research and development (“R&D”) teams. On December 14, 2018, Merit completed its acquisition of Vascular Insights, LLC (“Vascular Insights”), and acquired its ClariVein product, for up to $60 million.

The Class Period commences on February 26, 2019, when Merit reported fourth quarter 2018 and fiscal year 2018 results and established financial guidance for 2019, including core revenue growth of 8%-10%.

According to the complaint, on October 30, 2019, after the market closed, Merit issued a press release announcing its third quarter 2019 financial results, reporting non-GAAP EPS of $0.28, well below consensus estimates of $0.45, reducing fiscal year 2019 guidance, and completely withdrawing fiscal year 2020 guidance. Following this news, Merit’s stock price declined more than 29%, from a close of $29.11 per share on October 30, 2019 to a close of $20.66 per share on October 31, 2019.

The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (a) the integrations of Cianna and Vascular Insights, including their products, sales people, and R&D facilities, had caused operational disruptions and reduced sales and were months behind schedule; (b) sales of acquired company products had slowed substantially due to pre-acquisition pipeline fill, in particular for Vascular Insights’ products which, as late as July 2019, had zero orders during fiscal year 2019; and (c) in light of the foregoing, Merit’s reported financial guidance for fiscal 2019 and 2020 was made without a reasonable basis.

If you are a member of the class described above, you may no later than February 3, 2020 move the Court to serve as lead plaintiff of the class, if you so choose.


A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter.  If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-844-887-9500 or 1-610-667-7706, or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.

CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com

The securities fraud complaint alleges that Merit Medical Systems, Inc. (Nasdaq: MMSI) (“Merit”) made false and/or misleading statements. On October 30, 2019, Merit revealed that the integrations of acquired companies, Cianna Medical, Inc. and Vascular Insights, LLC, including their products, sales people, and R&D facilities, had caused operational disruptions and reduced sales and were months behind schedule.  Following this news, Merit’s stock price declined more than 29% on October 31, 2019.

Please complete this form relating to your transactions for Merit Medical Systems, Inc. (Nasdaq: MMSI) common stock between February 26, 2019 and October 30, 2019, inclusive (the “Class Period”).

You may also contact James Maro, Jr., Esq. or Adrienne Bell, Esq. at 610.667.7706 or toll free at 844.887.9500, or you may submit your information via email at info@ktmc.com, or you may click here to print a PDF of this form.

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# of Shares
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# of Contracts
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Did you purchase shares of Merit Medical Systems, Inc. prior to the Class Period?
Are you a current or former employee of Merit Medical Systems, Inc.?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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