Nevro investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Nevro design, develops and manufactures medical device treatments for patients suffering from debilitating chronic pain. The company’s principal products and revenue drivers are its HF10 therapies delivered by its Senza I and Senza II spinal cord stimulation (“SCS”) systems, which the defendants regularly touted as “novel,” “proprietary” and the lifeline of its business and sales growth.
The complaint alleges that, on April 27, 2018 Boston Scientific Corp. (“Boston Scientific”) had filed an action against Nevro asserting claims of patent infringement, theft of trade secrets, and tortious interference with contract. The complaint detailed a long running fraudulent scheme by Nevro dating back to at least 2009, whereby Nevro actively recruited and hired dozens of former Boston Scientific employees, and then stole Boston Scientific’s confidential proprietary trade secrets to develop Nevro’s Senza I and Senza II systems, with the full knowledge and awareness of the defendants. Following this news, Nevro’s share price declined $1.46 per share.
Then, on May 7, 2018, the company reported its first quarter 2018 financial results that fell drastically short of estimates, which was blamed in large part on a 31% increase in quarterly operating expenses, driven primarily by legal expenses associated with the company’s patent infringement litigation with Boston Scientific. Following this news, Nevro’s share price dropped 16%, or $14.67 per share.
Finally, on July 13, 2018, prior to the market opening, Nevro announced that the company had “terminate[d] James Alecxih’s, Vice President Worldwide Sales, employment with the Company.” Following this news, the stock price fell another 15%, or $10.27 per share.
The complaint alleges that during the Class Period, the defendants failed to disclose that: (1) Nevro had engaged in a fraudulent scheme by using protected confidential and proprietary trade secrets and stolen documents from its competitors to develop and enhance the company’s Senza I and Senza II systems; (2) as a result, the company’s Senza I and Senza II systems were not “novel” or “proprietary,” (3) these practices caused the company to be vulnerable to increased litigation expenses and adverse legal and regulatory action; (4) as a result, Nevor’s U.S. sales growth was not sustainable; and (5) as a result of the foregoing, the defendant’ statements about Nevro’s business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
If you are a member of the class described above, you may no later than October 22, 2018 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. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their 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 1-888-299-7706 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
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com