SAN FRANCISCO, May 17, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges Inari Medical, Inc. (NASDAQ: NARI) investors who suffered substantial losses to submit your losses now.
Class Period: Feb. 24, 2022 – Feb. 28, 2024
Lead Plaintiff Deadline: July 12, 2024
Visit: www.hbsslaw.com/investor-fraud/nari
Contact the Firm Now: NARI@hbsslaw.com
844-916-0895
Inari Medical, Inc. (NARI) Class Action:
The litigation focuses on the propriety of Inari’s repeated claims during the class period about factors contributing to its revenue and expense growth.
The complaint alleges that Inari made misleading statements and failed to disclose that: (1) the reason for its positive revenue results was that it was employing illegal practices in violation of the federal Anti-Kickback Statute and False Claims Act; and (2) its increased expenses was due in large part to illegally compensating medical professionals to use its products.
Investors and analysts began to scrutinize Inari’s claims on Feb. 29, 2024, when the company revealed that “[i]n December 2023, we received a civil investigative demand (‘CID’) from the U.S. Department of Justice, Civil Division, in connection with an investigation under the federal Anti-Kickback Statute and Civil False Claims Act (the ‘Investigation’)[]” and “[t]he CID requests information and documents primarily relating to meals and consulting service payments provided to health care professionals (‘HCPs’).” Inari also warned that “[d]epending on the outcome of the Investigation, there may be a material impact on our business, results of operations, or financial condition.”
This news sent the price of Inari shares spiraling over $12 (about 21%) lower on Feb. 29, 2024.
Scrutinizing the disclosure, Piper Sandler wrote in a Feb. 29, 2024 report, “NARI disclosed on the EPS call that in December 2023, the company received a civil investigative demand from the U.S. DOJ requesting information primarily related to meals and consulting service payments provided to health care professionals. We anticipate some investor consternation around this topic, which may present an overhang on share.”
In turn, Piper Sandler downgraded NARI to neutral and lowered its price target for the stock to $55 from $85, stating that U.S. core concerns and the DOJ investigation “push us to the sidelines.”
Likewise, in a Feb. 29, 2024 report, Jefferies lowered its price target of NARI to $80 from $91.00, noting that the company expects the DOJ investigation “could take years to resolve.”
“We are investigating whether Inari may have misled investors by claiming its revenue growth was due to organic factors and its expense growth was primarily attributable to the company’s ‘personnel-related’ expenses,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Inari and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Inari case and our investigation, read more »
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
