On August 27, 2015, Michael Ellis filed a class action lawsuit alleging that the Colorado Springs medical device company Spectranetics Corporation distorted their revenue earnings, leading to artificially inflated stock prices and negatively affecting the company’s shareholders.
The class of the suit consists of all those who purchased Spectranetics securities between February 19, 2015 and July 23, 2015, and who were damaged by the actions of the defendant. Excluded from the class are the officers and directors of Spectranetics, their legal counsel, and immediate family members.
The plaintiff estimates hundreds or possibly thousands are members of this particular class.
The plaintiff alleges Spectranetics was deceptive in several ways, failing to disclose information to investors and making false or misleading statements. The complaints include that Spectranetics purportedly was suffering losses due to growing competition, and that the company lacked a sufficient sales force. Thus, Spectranetics was underperforming. Additionally, the suit asserts Spectranetics lacked adequate controls, and its representatives made false and/or misleading statements about its prospects and business operations.
In particular, Spectranetics faced heavy competition for its drug-coated balloon products, causing unusually heavy declines per share through the class action period.
Spectranetics has lowered its forecast for the remainder of 2015.
Procedural Status. The lawsuit was filed on August 27, 2015 and is captioned Michael Ellis v. The Spectranetics Corporation, Scott Drake, and Guy A. Childs. It was filed in the United States District Court for the District of Colorado. Its civil docket number is 1:15cv01857. The lead plaintiff deadline is October 26, 2015.
The court created the leadership structure in late 2015. We will update this case in mid 2016, once the consolidated complaint has been filed.