NEW YORK–(BUSINESS WIRE)–Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Becton, Dickinson and Company (“Becton” or the “Company”) (NYSE:BDX) of the April 27, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Becton stock or options between November 5, 2019 and February 5, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/BDX. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Becton securities between November 5, 2019 and February 5, 2020 (the “Class Period”). The case, Kabak v. Becton Dickinson & Company, No. 20-cv-02155 was filed on February 27, 2020 and it has been assigned to Judge Stanley R. Chesler.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose: (1) that certain of Becton’s Alaris infusion pumps experienced software errors and alarm prioritization issues; (2) that, as a result, the Company was investing in remediation efforts to address these product issues, rather than a software upgrade to “make enhancements;” (3) that the Company was reasonably likely to face regulatory delays in connection with the software remediation; (4) that, as a result of the foregoing, Becton was reasonably likely to recall certain of its Alaris infusion pumps; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
Specifically, on February 6, 2020, Becton lowered its fiscal 2020 guidance, announcing that it expected revenue to increase by only 1.5 to 2.5 percent, “to reflect the impact of the remediation effort and anticipated loss of sales of the Alaris infusion system.” According to the Company, the software remediation plan for the Alaris system “will require additional regulatory filings,” and existing customers would have “access to the Alaris System under medical necessity.”
Moreover, Becton disclosed that it had recalled certain of its Alaris systems and that it would only sell the infusion pump to existing customers who demonstrate a medical necessity.
On this news, Becton’s stock price fell from $285.99 per share on February 5, 2020 to a closing price of $252.25 per share on February 6, 2020—a $33.74 or 11.80% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Becton’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
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