BENSALEM, Pa.–(BUSINESS WIRE)–$STAA #classaction–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased STAAR Surgical Company (“STAAR” or the “Company”) (NASDAQ: STAA) securities between February 26, 2020 and August 10, 2020, inclusive (the “Class Period”). STAAR investors have until October 19, 2020 to file a lead plaintiff motion.
Investors suffering losses on their STAAR investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
On August 11, 2020, J Capital published a report, claiming the Company has overstated its sales in China by at least one-third (or $21.6 million), “meaning all of the company’s $14 mln in 2019 profit is fake.” Citing over 75 interviews with former employees, site visits to China and Switzerland, as well as extensive review of public documents, the report concludes that STAAR reports fake sales revenues by overstating sales and then marking up actual marketing costs to hide “phantom” revenue. According to the report, the financial statements for STAAR’s largest Chinese client indicate that it bought only about half as many lenses as the Company reports.
On this news, the Company’s share price fell $3.17, or over 6%, to close at $48.25 per share on August 11, 2020, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that STAAR is the subject of a report by investment analyst J Capital titled, “STARR Surgical, Less Than Meets the Eye.” The report alleges that the Company has overstated its sales in China by at least one-third, “meaning all of the Company’s $14 mln in 2019 profit is fake.” The report, based on extensive interviews and research, states that the Company reports fake sales numbers and then marks up marketing costs in a scheme to hide “phantom” revenue.
If you purchased STAAR securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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