STAAR Surgical Executives Under Investigation
On November 16, 2015, the U.S. District Court for the Central District of California issued a tentative ruling denying defendants’ motion to dismiss securities class action claims against STAAR Surgical Co. (NASDAQ: STAA) and certain of its officers. U.S. District Judge Michael W. Fitzgerald has not yet issued a final ruling on the motion.
The class action plaintiffs allege that, during the period November 1, 2013 through June 30, 2014, certain of STAAR’s officers made misleading statements and omitted material information about STAAR’s compliance with FDA regulations regarding its manufacturing processes and facilities, so as to mislead investors into believing that FDA approval of its TICL contact lenses was imminent. The class action plaintiffs specifically allege that defendants failed to disclose that the FDA had found that the Company did not maintain Design History files at its manufacturing plant, and as a result issued a Warning Letter to STAAR on May 27, 2014.
On June 30, 2014, when the FDA’s findings regarding deficiencies in STAAR’s manufacturing facility and processes were disclosed, STAAR’s share price dropped from $16 to $14.15 per share, about 17.5%. Since then, STAAR’s stock has continued to decline and today trades at approximately $8.50 per share.
Shareholder rights law firm Schubert Jonckheer & Kolbe LLP (the “Schubert firm”) is investigating whether derivative claims on behalf of STAAR may be warranted. Through a derivative action, STAAR may seek to be repaid for its losses due to having to defend the class action and pay any damages assessed therein.
If you are a long-term holder of STAAR Surgical stock and wish to obtain additional information about your legal rights, please contact Miranda Kolbe via email at email@example.com or by telephone at (415) 788-4220, or fill out the form on the right.