SAN FRANCISCO, Jan. 13, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Penumbra, Inc. (NYSE: PEN) investors to submit their losses now .
Penumbra, Inc. (PEN) Investigation:
The investigation centers on whether Penumbra misled investors about the company’s flagship products for treating ischemic stroke.
On Nov. 9, 2020, research firm Quintessential Capital Management (“QCM”) published a scathing report about “Penumbra and its ‘killer catheter’”, concluding: (1) “Penumbra’s flagship ‘Jet 7’ device is linked to 18 recorded deaths, 39 injuries: this might be only the ‘tip of the iceberg;’” (2) “[t]he device is unsafe and unmarketable: we believe an FDA class 1 recall highly likely”; (3) “Penumbra may have been highly misleading in critical parts of its communication with doctors and investors;” and, (4) “[d]espite appearances, financial metrics are rapidly deteriorating, anticipating a possible sharp drop in sales.”
Then, on Dec. 8, 2020, QCM published another report accusing Penumbra of using a fake character to generate supporting scientific literature for its products. According to QCM, “[t]his fraudulent character appears to have been fabricated by management in a reckless attempt to hide its involvement with critical research produced with significant undisclosed conflicts of interest.” Significantly, Penumbra later admitted its co-founder, Arani Bose, was the real author of certain challenged literature.
Then, on Dec. 15, 2020, Penumbra announced it was voluntarily recalling all configurations of its JET 7 Xtra Flex device because it may be susceptible to damage during use and subsequent patient injury or death.
Most recently, on Dec. 28, 2020, research firm Marcus Aurelius Value published a report concluding Penumbra’s recall was not just a matter of “bad luck” but “instead symptomatic of more pervasive rot.” The report accuses Penumbra of improperly using a small Tennessee entity as the “‘independent’ core lab used to adjudicate many of Penumbra’s clinical studies since at least 2013 even though it is registered to the wife of a Penumbra scientific author and site investigator.”
These events have driven the price of Penumbra shares sharply lower.
“We’re focused on investor losses and whether Penumbra misled investors about the Jet 7 device’s safety,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Penumbra investor or have information that may assist our investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Penumbra should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email PEN@hbsslaw.com.
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895