NEW YORK, Aug. 31, 2020 /PRNewswire/ -- Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the common stock of Staar Surgical Company ("STAAR" or the "Company") (NASDAQ: STAA) between February 26, 2020, and August 10, 2020 (the "Class Period"). The lawsuit filed in the United States District Court for the Central District of California alleges violations of the Securities Exchange Act of 1934.
If you purchased STAAR securities, and/or would like to discuss your legal rights and options please visit STAAR Shareholder Lawsuit or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations and prospects. Specifically, Defendants misrepresented and/or failed to disclose to investors that the Company was overstating and/or mischaracterizing: (i) its sales and growth in China; (ii) its marketing spend; (iii) its research and development expenses; and that as a result of the foregoing; (iv) Defendants' public statements were materially false and misleading at all relevant times.
On August 5, 2020, after the markets closed, STAAR reported its financial results for the second quarter ended July 3, 2020 filing a form 10-Q and issuing a press release with the SEC. In the 10-Q, STAAR reported that "the Company's distributor in China, accounted for 57% and 43% of net sales for the three and six months ended June 28, 2019, respectively.
On this news, the Company's stock price plummeted by approximately 10% from an August 5, 2020 close of $61.81 per share to an August 6 close of $55.86.
Then on August 11, 2020 analyst J Capital Research published a report in which it wrote that "[w]e think that STAAR Surgical has overstated sales in China by at least one-third, or 21.6 mln. That would mean that all of the company's 14 mln in 2019 profit is fake." the report continued that "[f]ake sales [in China] come at 100% margins and therefore translate directly into profit. That means that roughly $21.6 mln in overstated Chinese sales in 2019 represent 152% of total company profit. In other words, without the fraud that we believe pervades the China business, STAAR is losing money."
On this news, STAAR's stock price plummeted again, closing at $48.26 on August 11, 2020, down approximately 6.2% from its August 10, 2020 closing price of $51.42.
If you wish to serve as lead plaintiff, you must move the Court no later than October 19, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased STAAR securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/staarsurgicalcompany-staa-shareholder-class-action-lawsuit-stock-fraud-292/apply/ or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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