|Company Name||Cutera, Inc.|
|Class Period||February 17, 2021 to May 09, 2023|
|Lead Plaintiff Motion Deadline||July 24, 2023|
On February 28, 2023, after the market closed, Cutera announced that it was unable to timely file its 2022 Annual Report. The Company also disclosed that it had identified “material weaknesses in its internal control over financial reporting related to ineffective information technology general controls and ineffective inventory count controls.” On this news, Cutera’s stock price fell $0.32, or 1%, to close at $32.11 per share on March 1, 2023.
Then, on March 16, 2023, Cutera disclosed that it had identified additional material weaknesses related to stock-based compensation. On this news, Cutera’s stock price fell $3.49, or 12.5%, to close at $25.36 per share on March 17, 2023.
Then, on April 7, 2023, the Company announced that its Executive Chairman and Chairman of the Board had demanded a special meeting of the Company’s stockholders to vote on the removal of five members of the Company’s Board.
On April 12, 2023, Cutera revealed that it terminated the Company’s Executive Chairman and Chairman of the Board, as well as the Company’s Chief Executive Officer. In connection with this announcement, Cutera also withdrew its full-year 2023 financial guidance. On this news, Cutera’s stock price fell $7.63, or 28.1%, to close at $19.44 per share on April 12, 2023.
Then, on May 9, 2023, Cutera reported disappointing financial results for the first quarter 2023, stating that it was “below expectations due to execution challenges in the business.” Furthermore, the Company announced that its Chief Financial Officer had resigned. On this news, Cutera’s stock price fell $6.06, or 30%, to close at $14.14 per share on May 11, 2023, thereby injuring investors further.
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: (1) overstated the sustainability of Cutera’s revenue growth; (2) failed to disclose significant conflicts among members of the Company’s senior leadership and Board; (3) failed to disclose several material weaknesses in the Company’s internal control over financial reporting; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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