San Francisco, Calif .– (Newsfile Corp. – October 11, 2020) – Hagens Berman urges STAAR Surgical Company (NASDAQ: STAA) investors to reach out to the company now. A securities fraud class lawsuit has been filed and certain investors may have valuable claims.
Classes: February 26, 2020 – August 10, 2020
Lead plaintiff deadline: October 19, 2020
Contact an attorney now: [email protected]
Class action lawsuit against securities of STAAR Surgical Company (STAA):
According to the complaint, STAAR and senior management have repeatedly overstated and / or misrepresented (1) the company's sales and growth in China, (2) its marketing spend, and (3) its research and development spending.
After the markets closed on August 5, 2020, investors began to learn the truth as STAAR reported disappointing sales in the second quarter of 2020 and a net loss from net income for the second quarter of last year. Additionally, the company announced that it was massively and increasingly exposed to a single distributor in China, which accounted for 53% of net sales in Q2 2020 versus 49% in the year-ago quarter and 57% of trade receivables versus 43% for the first quarter of 2020.
On August 11, 2020, research firm J Capital published a scathing report that seriously questioned STAAR's success story in China. Specifically, J Capital accused the company of overvaluing its sales in China by at least a third (or $ 21.6 million), "meaning the company's total profit of $ 14 million in 2019 is fake". The report – based on over 75 interviews with former employees, site visits in China and Switzerland, and a comprehensive review of public documents – concludes that STAAR reports fake sales by overestimating sales and then flagging actual marketing costs to "Phantom." "To hide receipts. J Capital also found that STAAR's largest Chinese customer only bought about half of the lenses STAAR reported.
These events led to a sharp decline in the price of STAAR shares.
"We're focusing on investor losses and proving that STAAR has boiled up its books by increasing its China sales," said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are a STAAR investor, click here to discuss your statutory rights with Hagens Berman.
Whistleblowers: Individuals with nonpublic information about STAAR should consider their options to help with the investigation or use the SEC whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or send an email to [email protected]
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About Hagens Berman
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The source version of this press release can be found at https://www.newsfilecorp.com/release/65704