Inari Medical Inc. (NARI: NSD), a medical device company specializing in catheter-based technologies, is facing a class action lawsuit alleging securities fraud. The lawsuit claims that the company misled investors during a specific period about its business practices.
Investors Allege Misrepresentation:
The lawsuit, filed in June 2024, alleges that Inari made false or misleading statements throughout a class period, typically defined as the timeframe during which investors purchased securities. The specific dates of the class period in this case are still being determined by the court.
According to the lawsuit, Inari allegedly touted its strong financial performance, attributing it to the success of its core business. However, the lawsuit contends that the company failed to disclose that it was improperly compensating healthcare professionals to use its products. This alleged practice could violate the federal Anti-Kickback Statute and Civil False Claims Act.
Stock Price Drops After DOJ Investigation Revealed:
The lawsuit highlights that in February 2024, Inari disclosed receiving a civil investigative demand from the U.S. Department of Justice (DOJ) concerning payments to healthcare providers. This revelation sent Inari’s stock price down nearly 30% over several trading days.
The lawsuit seeks compensation for investors who purchased Inari stock during the class period and suffered losses due to the alleged misrepresentations. Investors who meet these criteria can contact the law firms representing the class action for more information.
Conclusion:
It’s important to note that the lawsuit is still in its early stages. The court will have to decide whether to certify the case as a class action and determine the final boundaries of the class period. If the case proceeds, it could take months or even years to be resolved.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
