Bernstein Liebhard LLP Reminds Investors That Less Than One Week Remains to Make a Motion for Lead Plaintiff in a Securities Class Action Lawsuit Against Inogen, Inc.
NEW YORK, May 01, 2019 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP announced today that less than one week remains to make a motion for lead plaintiff in a securities class action lawsuit alleging claims on behalf of those who purchased the common stock of Inogen, Inc. (“Inogen” or the “Company”) (NASDAQ: INGN) between November 8, 2017 and February 26, 2019, both dates inclusive (the “Class Period”). The lawsuit, which was filed in the United States District Court for the Central District of California, alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act and SEC Rule 10b-5.
According to the lawsuit, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Inogen had overstated the true size of the total addressable market (“TAM”) for its portable oxygen concentrators and had misstated the basis for its calculation of the TAM; (2) Inogen had falsely attributed its sales growth to the strong sales acumen of its salesforce, when in reality it was due in large part to sales tactics designed to deceive its elderly customer base; (3) the growth in Inogen’s domestic business-to-business sales to home medical equipment (“HME”) providers was inflated, unsustainable and was eroding direct-to-consumer sales; and (4) very little of Inogen’s business was actually coming from the more stable Medicare market. As a result of this information being withheld from the market, the price of Inogen common stock was artificially inflated to more than $282 per share during the Class Period.
On November 6, 2018, Inogen announced its third quarter 2018 financial results and, while the quarterly financial results were in line with expectations, defendants revealed that the growth in domestic business-to-business sales to HME providers had slowed and reduced Inogen’s guidance for fiscal 2018 adjusted EBITDA. As a result of this news, the price of Inogen common stock fell over 19%, or $37.44 per share, to close at $155.86 per share. Then, following the publication of detailed investigative reports by stock analysts on February 8, 2019 and February 12, 2019 which challenged, among other things, the size of Inogen’s actual TAM, the basis for its prior TAM claims, and the source of its Class Period sales growth, the price of Inogen common stock declined further to close at $138.05 per share on February 12, 2019.
Then, on February 26, 2019, after the close of trading, Inogen announced disappointing fourth quarter and fiscal year 2018 financial results and significantly reduced its previously provided fiscal 2019 net income guidance. Inogen’s CEO also backtracked on the Company’s prior TAM estimate of 2.5 to 3 million patients, and blamed Inogen’s poor domestic business-to-business sales on order activity that slowed from one national homecare provider. On this news, the price of Inogen common stock fell an additional $33.77 per share, or more than 24%, from a close of $140.06 per share on February 26, 2019, to a close of $106.28 per share on February 27, 2019.
If you wish to serve as lead plaintiff in the Inogen class action, you must move the Court no later than May 6, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Inogen common stock, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/inogen-inc-ingn-lawsuit-class-action-fraud-stock-115/ or contact Joe Seidman toll free at (877) 779-1414 or email@example.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Central District of California.
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