Deadline Established For Lead Plaintiff in Class Action Lawsuit Over Penumbra Jet 7 Xtra Flex Catheter

Following the filing of a class action lawsuit over Penumbra Jet 7 Xtra Flex catheter problems which were not adequately disclosed by the manufacturer, investors seeking to serve as lead plaintiff in the litigation have until March 16 to file a complaint.

In December, the FDA sent a letter to healthcare providers warning about serious Penumbra Jet 7 Xtra Flex catheter risks, following more than 200 adverse event reports and at least 14 deaths that resulted from catastrophic failures.

Following this action, a class action lawsuit was filed against Penumbra, Inc., the company’s CEO Adam Elsesser and the Executive Vice President and the head of global marketing, Gita Berry, indicating that investors who purchased shares between August 3, 2020 and December 15, 2020 should be entitled to damages due to false and misleading statements, which allegedly violate federal securities laws.

Did You Know?

AT&T Data Breach Impacts Millions of Customers

More than 73 million customers of AT&T may have had their names, addresses, phone numbers, Social Security numbers and other information released on the dark web due to a massive AT&T data breach. Lawsuits are being pursued to obtain financial compensation.

Learn More

The complaint was originally filed by Charles Williams, and has been assigned to U.S. District Judge Susan Illston in the U.S. District of Northern California, according to an order (PDF) issued on January 19, which indicates an initial case management conference will be held on May 7.

Those desiring to be lead plaintiffs in the class action reportedly have until March 16 to join the class action, according to press releases issued by securities fraud lawyers investigating potential claims.

The Jet 7 Xtra Flex catheter was one of Penumbra’s “flagship” products, which was designed to be inserted into an affected artery, navigated to a blood clot and used to suck the clot out of a patient’s body. However, by mid 2020, the lawsuit indicates Penumbra knew about problems with the catheter, after a distributor in Japan sent a warning to hospitals about catheter failures, and stopped selling the product in the country.

Approximately one month later, on July 27, 2020, Penumbra sent a warning to physicians and other healthcare providers about incidents where the distal tip broke or expanded, which put patients at risk of serious injury or death. However, in a financial report issued in August, the company told investors that the catheter’s performance was “exactly what we hoped it would be.”

Following the December Penumbra catheter recall, the manufacturer’s stock price fell about nine percent, from $224.02 per share to $204.07 per share overnight, which was a drop of $19.95 per share.

The Penumbra class action lawsuit seeks to pursue damages on behalf of all investors who purchased common stock during after June 2020, which it says was traded at artificially high prices due to the company’s misrepresentations. The company is also expected to face a number of individual catheter failure lawsuits brought by individuals who experienced problems with the device, or by family members now pursuing wrongful death lawsuits.

0 Comments

Share Your Comments

I authorize the above comments be posted on this page*

Want your comments reviewed by a lawyer?

To have an attorney review your comments and contact you about a potential case, provide your contact information below. This will not be published.

NOTE: Providing information for review by an attorney does not form an attorney-client relationship.

This field is for validation purposes and should be left unchanged.

More Top Stories

Gilead Settlement Resolves 2,625 HIV Drug Lawsuits Pending in Federal Courts for $40M
Gilead Settlement Resolves 2,625 HIV Drug Lawsuits Pending in Federal Courts for $40M (Posted yesterday)

Gilead says it will pay $40 million to resolve HIV drug lawsuits over Truvada, Atripla, Viread, Stribild and Complera pending in the federal court system, involving claims that the the company sat on safer formulations of the drugs for years to increase profits.

Gardasil Vaccine Lawsuits Being Prepared For Early Test Trials in Federal MDL
Gardasil Vaccine Lawsuits Being Prepared For Early Test Trials in Federal MDL (Posted 2 days ago)

In advance of a a conference this week, lawyers report that progress is being made to prepare a group of federal Gardasil vaccine lawsuits for early test trials, to help gauge how juries may respond to certain evidence and testimony that will be repeated throughout the litigation.