Penumbra, Inc
| Company Name | Penumbra, Inc |
| Stock Symbol | PEN |
| Class Period | August 03, 2020 to December 15, 2020 |
| Lead Plaintiff Motion Deadline | March 16, 2021 |
One of the Company’s flagship products is the Jet 7 Xtra Flex, an aspiration catheter to remove blood clots.
On September 14, 2020, the Foundation for Financial Journalism published an article raising concerns about the Jet 7 Xtra Flex’s safety profile, including that there had been 12 reported deaths since the product was introduced in mid-2019.
On this news, the Company’s stock price fell $5.77, or 3%, to close at $193.66 per share on September 14, 2020.
On November 9, 2020, Quintessential Capital Management issued a research report on the Company entitled “Penumbra and its ‘Killer Catheter’: A tale of corporate greed and seemingly blatant disregard for patients’ lives[.]” The report accused Penumbra of a “seemingly blatant disregard for patients’ lives.” The Company continued to insist that the Jet 7 Xtra Flex was “absolutely safe” and refuted any claims to the contrary by stating they made “no sense” and there “isn’t an issue.”
On November 23, 2020, the Journal of NeuroInventional Surgery published an article presenting three cases of patients who had suffered due to malfunctions with the Jet 7 Xtra Flex. The article was widely disseminated over the next two days.
On this news, the Company’s stock price fell $30.59, or 12%, to close at $224.12 per share on November 25, 2020.
On December 8, 2020, Quintessential Capital Management released a follow-up research report entitled “Is Penumbra’s core scientific research authored by a fake person?: The incredible story of Penumbra’s Dr. Antik Bose[.]” The follow-up report alleged that some of Penumbra’s scientific research pieces appear to have been incorrectly attributed or even authored by a fake individual.
On this news, the Company’s share price fell $19.95 per share, or almost 9%, to close at $204.07 per share on December 8, 2020, thereby injuring investors.
On December 15, 2020, after the market closed, Penumbra announced that it was voluntarily “recalling its JET 7 Xtra Flex because the catheter may become susceptible to distal tip damage during use[, which] may result in potential vessel damage, and subsequent patient injury or death.”
On this news, the Company’s stock price fell $13.84 per share, or almost 7%, to close at $174.98 per share on December 16, 2020, thereby injuring investors.
The complaint filed 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: (1) that the Jet 7 Xtra Flex had known design defects that made it unsafe for its normal use; (2) that Penumbra did not adequately address the risk of the Jet 7 Xtra Flex causing serious injury and deaths, which had in fact already occurred; (3) that the Jet 7 Xtra Flex was likely to be recalled due to its safety issues; and (4) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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