Avinger, Inc. investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Avinger is a commercial-stage medical device company that designs, manufactures and sells image-guided, catheter-based systems that are used by physicians to treat patients with peripheral arterial disease, or PAD. Avinger manufactures and sells a suite of products including the Lightbox imaging console, as well as the Wildcat, Kittycat, Ocelot family of catheters, which are designed to allow physicians to penetrate a total blockage in an artery, known as a chronic total occlusion, or CTO.
The complaint alleges that, on July 12, 2016, after the stock market closed, Avinger reported that it expected to realize lower-than-expected revenues for the second quarter 2016 of just $4.7 million. Avinger also lowered guidance for the entire year (2016) to between $19 million to $23 million, a significant reduction from the company’s previous guidance of $25 to $30 million.
Following this news, Avinger’s stock, which had closed on July 12, 2016 at $11.43 per share, declined by over $4.50, or 40%, on heavy volume of 2.6 million shares, to close at $6.89 per share.
The complaint alleges that the Prospectus failed to disclose that: (1) Avinger had not assembled a sales and marketing team with extensive medical device development and commercialization experience” and instead had fired key experienced sales and marketing personnel prior to the IPO in an effort to cut costs to attempt to make Avinger look more profitable, such that the sales and marketing personnel which remained at the time of the IPO consisted of too many inexperienced new hires with little to no knowledge of the company’s lumivascular products and insufficient experience commercializing medical devices; and (2) these existing, known problems with Avinger’s sales and marketing personnel were already having an adverse impact on the company’s ability to sell its lumivascular products to doctors and hospitals, and would continue to have such an effect in the future and thus inhibit the company’s ability to commercialize Pantheris, the company’s most promising device, and increase the base of customers using Avinger’s other lumivascular platform products.
If you are a member of the class described above, you may no later than September 5, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
Kessler Topaz Meltzer & Check, LLP
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