ConforMIS is a medical technology company that develops, manufactures, and sells joint replacement implants and related equipment that are purported to be individually sized and shaped to fit each patient’s individual anatomy. The complaint claims that ConforMIS has sold equipment for more than 30,000 knee implants in the US and Europe.
ConforMIS held its initial public offering (IPO) on July 1, 2015.
On August 31, 2015, ConforMIS announced a voluntary recall of specific serial numbers of patient-specific instrumentation for certain of its knee replacement product systems, in response to recent complaints of moisture on the patient-specific instrumentation. A total of approximately 950 patient-specific instrumentation sets were affected by ConforMIS’s recall, of which approximately 650 had already been used in joint implant surgeries. At the news of the recall, ConforMIS’s stock price dropped by $3.78, or 19.11%.
Patient-specific instrumentation is used during the surgery that places the implants in the body. Its goal is to use advanced medical imaging to create one-time-use instruments that help the surgeon position the implant better and increase the accuracy of the alignment. ConforMIS believes that the moisture on the instrumentation came from the sterilization process, and that the joint implants themselves were not affected.
The class action alleges that ConforMIS made false or misleading statements in connection with its IPO and subsequent filings with the SEC, because ConforMIS knew that its manufacturing processes were flawed and that a number of its products were defective.
What investors are part of this class action? The class period is currently defined as all persons who purchased ConforMIS securities (1) based on ConforMIS’s Registration Statement and Prospectus issued for its initial public offering on or about July 1, 2015, or (2) on the open market between July 1, 2015 and August 28, 2015, inclusive (the Class Period). ConforMIS stock trades on NASDAQ under the ticker symbol “CFMS”.
Procedural Status. The lawsuit was filed on September 3, 2015 and is captioned Klein v. ConforMIS, Inc. et al. It was filed in the Massachusettes District Court. Its civil docket number is 1:15cv13295. The lead plaintiff deadline is November 2, 2015.
This case is in the notice period. When a shareholder brings suit under certain federal securities laws, it must generally give notice of the suit via a press release. This notice starts a 60-day period during which any other shareholder can investigate the claims and choose to bring suit as well. At the end of the 60-day period, the court appoints a shareholder or group of shareholders to be the plaintiffs for the suit. We will review the docket again in June and update this page as warranted.