Tandem Diabetes Care, Inc.

On November 2, 2022, Tandem revised its 2022 financial guidance downward, forecasting Non-GAAP sales of $800 to $805 million, down from $835 to $845 million. The Company attributed the revision to increased competition in the diabetes care sector, pandemic complications, and inflation.

On this news, Tandem’s stock price fell $15.62, or 30.4%, to close at $35.72 per share on November 3, 2022, 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: (1) failed to adequately account for the potential impact of the release of Omnipod 5 and the impact of that product on the Company’s revenue; (2) deliberately misled investors regarding the impact of Omnipod 5 on revenue; (3) misled investors by creating the false impression that the factors which led to the decreased sales guidance in August – competition, COVID, and inflation – had not been adequately controlled for and were, in fact, improving; (4) deliberately misled investors when stating that the second half of 2022 had been adequately predicted; and (5) 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.