Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Northern District of Ohio on behalf of all those who purchased shares of Invacare Corporation (NYSE: IVC) ("Invacare" or the "Company") between July 22, 2010 through December 7, 2011, inclusive (the "Class Period").
The Complaint alleges that during the Class Period, Invacare and certain of its senior executives violated provisions of the Securities Exchange Act of 1934 by issuing false and misleading press releases, financial statements, filings with the Securities and Exchange Commission ("SEC"), and statements during investor conference calls. As alleged in the Complaint, Invacare and certain of its senior executives misled investors regarding Invacare's noncompliance with Food and Drug Administration ("FDA") guidelines and Current Good Manufacturing Practices ("CGMP"), and masked the fact that the Company suffered from widespread operational, quality, and regulatory deficiencies. Specifically, the Company concealed from investors that it received a series of warnings from the FDA -- known as Forms 483 -- which identified serious compliance violations at its two major United States-based manufacturing facilities.
After repeatedly failing to remedy these violations, the Company received a Warning Letter from the FDA, which the FDA released to the public on January 4, 2011. The Warning Letter identified a litany of CGMP violations and "recurring" consumer complaints concerning the safety of Invacare's medical beds, including incidents of death caused by entrapment and fire. In the Warning Letter, the FDA reprimanded Invacare for failing to take preventative action, document and evaluate serious complaints, and complete risk assessments to ensure the safety of its products. Disclosure of the Warning Letter caused Invacare stock to drop $1.38 per share, or 4.5 percent, to close at $29.29 per share.
Over the next several months, Defendants continued to downplay the scope and significance of Invacare's compliance issues, despite its receipt of two additional Forms 483 in August 2011, which were also concealed from investors. On December 8, 2011, however, Invacare issued a press release announcing that the FDA intended to enter a consent decree, which would require the suspension of certain operations until the Company's manufacturing facilities became compliant with FDA regulations. News of Invacare's systemic quality and regulatory deficiencies, which could take many months to remediate and impact Invacare's revenue and growth, caused the Company stock to plummet $5.88 per share, or 28.6 percent, to close at $14.70 per share, wiping out over $180 million in market capitalization.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Invacare shares during the Class Period. If you invested in Invacare shares as described above during the Class Period, and either lost money on the transaction or still hold the stock, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than July 23, 2013.
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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an Invacare shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Northern District of Ohio.