NEW YORK, Sept. 21, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been filed on behalf of shareholders of Medtronic PLC (NYSE: MDT) and Palantir Technologies, Inc. (NYSE: PLTR). Shareholders have until the deadlines below to ask the court to serve as lead plaintiff. Additional information on each case can be found at the link provided.
Medtronic PLC (NYSE:MDT)
Course period: June 8, 2019 – May 25, 2022
Lead Applicant Deadline: November 7, 2022
Medtronic is a medical device company. Among its products is the MiniMed insulin pump system for the treatment of diabetes. Systems include the MiniMed 600 series models and the MiniMed 780G model. Medtronic is currently seeking regulatory approval for the MiniMed 780G model, which uses an advanced closed-loop hybrid system. During the Class Period, Medtronic repeatedly assured investors that the MiniMed 780G model was “on track” for U.S. Food and Drug Administration (“FDA”) approval and would provide Medtronic with the edge it needed to close a growing gap with its competitors. in the diabetes market.
Medtronic made these representations despite known issues with MiniMed 600 series models. Indeed, in November 2019, the company issued a warning that some MiniMed 600 series insulin pumps may have pump retaining rings. damaged, which could cause the system to release too much insulin, and asked customers with damaged bands to contact the company to have them replaced. On February 7, 2020, the FDA classified Medtronic’s November 2019 notification as a Class I recall, the most serious type of recall.
Problems with the MiniMed 600 series escalated in October 2021, when the company extended its recall to everything MiniMed Model 630G and 670G insulin pump systems – whether or not a retaining ring has been damaged. Despite these serious issues with the 600 series, Medtronic assured investors that they expect the MiniMed 780G to “drive growth.” Consistent with these upbeat statements, Medtronic has again assured investors that FDA approval of the MiniMed 780G is imminent.
Investors began to uncover the truth about the company’s MiniMed operations on December 15, 2021, when Medtronic disclosed that it had received a warning letter from the FDA regarding its Northridge, Calif. ‘Warning “). The warning letter followed an FDA inspection of the company’s MiniMed 600 series recall and focused on “inadequacy of specific medical device quality system requirements . . . in the areas of risk assessment, corrective and preventive measures, complaint handling, device recalls and adverse event reporting.
As a result of the warning letter, including the resulting uncertainty over FDA approval of MiniMed 780G and other products in Medtronic’s Diabetes business unit, the Diabetes Group, Medtronic lowered its guidance for its Diabetes Group, now expecting Diabetes Group product revenue to decline in the mid-single digit range for fiscal 2022. On this news, Medtronic’s common stock price fell 6 $.75 per share, or approximately 6%, from a close of $111.69 per share on Dec. 14, 2021, to close at $104.94 per share. share on December 15, 2021.
The financial fallout from the FDA findings continued to surface on May 26, 2022, when Medtronic released its fourth quarter and full year 2022 financial results, and provided guidance for fiscal year 2023. Notably, Medtronic revealed that as a result of the company’s need to improve its quality control system and its expectation that the MiniMed 780G model – which defendants had repeatedly identified as crucial for future growth – would not not approved in 2023, the company expected revenue from its Diabetes Group to decline between 6% and 7% in fiscal 2023. On this news, Medtronic’s common stock price fell 6, $10 per share, or nearly 6%, from a close of $105.54 per share on May 25, 2022 to $99.44 per share on May 26, 2022. .
Throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts, regarding the business and operations of the company by failing to disclose that: (1) Medtronic’s product quality control systems were inadequate; (2) Medtronic failed to comply with numerous regulations regarding risk assessment, corrective and preventive actions, complaint handling, device recalls, and adverse event reporting; (3) these failures increased the risk of regulatory investigation and action; (4) due to company misconduct, the FDA would delay approval of other Medtronic MiniMed devices, including the MiniMed 780G; (5) these delays in product approvals, together with the company’s need to improve its quality control systems, would adversely affect Medtronic’s financial performance and cause it to fall even further behind its competitors; and (6) as a result of the foregoing, defendants’ statements about the company’s business, operations and prospects lacked a reasonable basis.
For more information on the Medtronic class action, please visit: https://bespc.com/cases/MDT
Palantir Technologies, Inc. (NYSE: PLTR)
Course period: November 9, 2021 – May 6, 2022
Lead Applicant Deadline: November 14, 2022
Palantir builds and deploys software platforms to assist the US intelligence community in counterterrorism investigations and operations. The Company has two operating segments, commercial and government, the latter primarily serving US federal government and non-US government agencies. Palantir also invests in what are called “marketable securities,” which consist of equity securities in publicly traded companies.
Palantir has consistently described sources of geopolitical instability and other disruptions –for examplearmed conflicts, economic crises and the COVID-19 pandemic – as tailwinds for its business, as the Company’s products and services are meant to help its customers assess and respond to such disruptions.
On May 9, 2022, Palantir issued a press release announcing its first quarter financial results and second quarter guidance. For the first quarter, Palantir reported adjusted EPS of $0.02, compared to analyst estimates of $0.04 per share, noting on a conference call that the “[f]adjusted first quarter [EPS of] $0.02. . . includes a negative impact of $0.02 primarily due to unrealized losses on marketable securities. The company also disclosed that government revenue grew only 16% year-over-year for the first quarter, representing a significant slowdown in revenue growth from previous quarters, and that for the second quarter, the company forecast sales of $470 million, compared to estimates of $483.76 million.
On this news, Palantir stock price fell $2.02 per share, or 21.31%, to close at $7.46 per share on May 9, 2022.
As multiple news outlets reported that day, Palantir’s significant decline in revenue growth, particularly from its government clients, came as a surprise to investors, especially given the current geopolitical instability and… other disturbances caused by, among othersthe ongoing COVID-19 pandemic and the Russian-Ukrainian war, precisely the kind of destabilizing conditions the company had previously touted as tailwinds for its business.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Palantir’s investments in marketable securities had a material adverse impact on earnings per share (“EPS”) results ) of the society ; (ii) Palantir overestimated the sustainability of its government segment’s growth and revenue; (iii) Palantir was experiencing a significant slowdown in revenue growth, particularly among its government customers, despite ongoing global conflicts and market disruptions; (iv) as a result of all of the above, the Company was likely to miss the consensus estimates for its first quarter 2022 (“Q1”) EPS and second quarter 2022 (“Q2” sales outlook); and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
For more information on the Palantir class action, please visit: https://bespc.com/cases/PLTR
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertisement. Prior results do not guarantee similar results.
Bragar Eagel & Squire, CP
Brandon Walker, Esq.
Melissa Fortunato, Esq.