Several securities class actions were recently filed against Insulet Corporation.
The medical device firm, based in Billerica, Massachusetts, focuses on developing, manufacturing and distributing the OmniPod Insulin Management System. This system was designed to help people who have insulin-dependent diabetes.
Glancy Prongay & Murray suit
On May 5, 2015, Glancy Prongay & Murray LLP announced the filing of a lawsuit representing shareholders who bought Insulet securities between Feb. 27, 2013, and April 30, 2015. These dates are inclusive and represent the class period.
This claim, brought forth in the U.S. District Court for the District of Massachusetts, involved allegations regarding false and or misleading statements and failure to disclose material facts.
Gainey McKenna & Egleston claim
On May 6, 2015, Gainey McKenna & Egleston revealed that it had also brought forth a securities class action on the behalf of all organizations or individuals who purchased Insulet securities between Feb. 27, 2013, and April 30, 2015.
This shareholder claim – which alleged that the company and certain officers breached the Securities Exchange Act of 1934 – was filed in the U.S. District Court for the District of Massachusetts. It claimed that the defendants made false and/or misleading statements, and also neglected to disclose material facts, relating to the business, prospects and operations of the company.
Both the securities class action filed by Gainey McKenna & Egleston – and the lawsuit brought forth by Glancy Prongay & Murray – alleged the defendants failed to reveal that the company’s sales and marketing efforts were encountering challenges, that Insulet was facing less robust demand for its products and that, because of the aforementioned issues, the medical device firm’s financial performance was inconsistent.
The lawsuits further claimed that as a result of the following allegations, the positive statements defendants were making about the business, prospects and operations of the company did not have a reasonable basis.
Finally, the securities class actions alleged that because of defendants’ wrongful actions such as failing to reveal key information, and the sharp drop in value that company securities suffered after Insulet announced a decline in revenue, members of the class incurred significant losses and damages.
What investors should know
Glancy Prongay & Murray informed eligible investors that if they want to serve as lead plaintiff, they have until no later than 60 days following the lawsuit’s filing to move the court. Gainey McKenna & Egleston provided more specific information, indicating that shareholders eligible to serve as lead plaintiff in the securities class action can do so no later than July 6, 2015.