Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against TransEnterix, Inc.
Oklahoma City, OK (June 13, 2016) – On June 2, 2016, a securities class action lawsuit was filed in the United States District Court for the Eastern District of North Carolina against TransEnterix, Inc. (NYSE: TRXC). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 10, 2016 through May 10, 2016. More specifically, this litigation was filed because the Company failed to disclose deficiencies within TransEnterix’s 510(k) submission regarding SurgiBot that undermined the likelihood that SurgiBot would receive FDA clearance, which would leave the Company unable to commercialize the SurgiBot in 2016.
On May 10, 2016, the Company issued a press release relating to SurgiBot stating that it “expects to have further discussion with the FDA, but currently believes that a new 510(k) submission would be required to obtain clearance.” The Company also stated that it decided to reprioritize its near-term regulatory efforts to focus on another submission. As a result, the Company has taken actions to reduce headcount and investment related to the SurgiBot. On this news, TransEnterix common stock fell to close at $1.84 per share on May 11, 2016.
To join this class action, click InvestCertTRXC.pdf to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Mon, June 13, 2016
by Robin Hester filed under