Cases
Zimmer Biomet Holdings, Inc. (NYSE: ZBH)
Securities Class Action
Overview
Overview
- Date:
- 12/7/2016
- Company Name:
- Zimmer Biomet Holdings, Inc.
- Stock Symbol:
- ZBH
- Class Period:
- FROM 9/7/2016 TO 10/31/2016
- Status:
- Closed/Complete
- Court:
- U.S. District Court: District of Northern Indiana
NEW YORK, December 7, 2016 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Indiana Northern District Court on behalf of all persons or entities who acquired the Zimmer Biomet Holdings, Inc. (NYSE: ZBH) securities between September 7, 2016 to October 31, 2016 (the “Class Period”).
The complaint states that during the Class Period, Zimmer made materially false and/or misleading statements, as well as failed to disclose material adverse facts about its business, operations, and prospects. The complaint alleges the following: (1) that issues within the supply chain caused a decline in order fulfillment, particularly within the knee and hip portfolios; (2) that, because of this, Zimmer would not realize its revenues and profit as expected; and (3) that as a result of the above, the Company's statements regarding its business, operations and prospects, were false and misleading and/or lacked a reasonable basis.
On October 31, 2016, the Company sent a press release reporting third quarter 2016 financial results. Zimmer reported net sales of $1.83 billion, and lowered guidance for the full year 2016 at $7.630 billion to $7.650 billion, a decline from the $7.68 billion to $7.715 billion estimated in July. Zimmer claims weak sales are due to a change in the supply chain, leading to a lack of available implants and instrument sets during the quarter.
In a phone meeting with investors after the above release, the Company stated, "Third quarter revenue was below our expectations, primarily due to execution issues within our large joint supply chain, which led to a degradation in order fulfillment rates late in the quarter as well as our performance in dental . . . As a consequence, we underestimated demand for certain key cross-sell brands within our existing customer base, leading to a depletion of our safety stocks and also affecting our ability to capitalize on new customer opportunities."
Following this news, Zimmer shares fell $17.15 per share on October 31, 2016.
If you acquired Zimmer securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
The complaint states that during the Class Period, Zimmer made materially false and/or misleading statements, as well as failed to disclose material adverse facts about its business, operations, and prospects. The complaint alleges the following: (1) that issues within the supply chain caused a decline in order fulfillment, particularly within the knee and hip portfolios; (2) that, because of this, Zimmer would not realize its revenues and profit as expected; and (3) that as a result of the above, the Company's statements regarding its business, operations and prospects, were false and misleading and/or lacked a reasonable basis.
On October 31, 2016, the Company sent a press release reporting third quarter 2016 financial results. Zimmer reported net sales of $1.83 billion, and lowered guidance for the full year 2016 at $7.630 billion to $7.650 billion, a decline from the $7.68 billion to $7.715 billion estimated in July. Zimmer claims weak sales are due to a change in the supply chain, leading to a lack of available implants and instrument sets during the quarter.
In a phone meeting with investors after the above release, the Company stated, "Third quarter revenue was below our expectations, primarily due to execution issues within our large joint supply chain, which led to a degradation in order fulfillment rates late in the quarter as well as our performance in dental . . . As a consequence, we underestimated demand for certain key cross-sell brands within our existing customer base, leading to a depletion of our safety stocks and also affecting our ability to capitalize on new customer opportunities."
Following this news, Zimmer shares fell $17.15 per share on October 31, 2016.
If you acquired Zimmer securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.