NEW YORK, Dec. 06, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Zimmer Biomet Holdings, Inc. (“Zimmer” or the “Company”) (NYSE:ZBH) of the January 31, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Northern District of Indiana on behalf of all those who purchased Zimmer securities between September 7, 2016 and October 31, 2016 (the “Class Period”). The case, Shah v. Zimmer Biomet Holdings, Inc. et al, No. 3:16-cv-00815 was filed on December 2, 2016, and has been assigned to Judge Theresa Lazar Springmann.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose: (1) that supply chain problems led to a decrease in order fulfillment rates, particularly within Zimmer’s knee and hip portfolios; (2) as such, the Company would not achieve its revenues and profit forecast; and (3) as a result, the Company’s statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
Specifically, on October 31, 2016, Zimmer reported its third quarter 2016 financial results. The Company reported net sales of $1.83 billion, and lowered guidance for the full year 2016 to $7.630 billion to $7.650 billion, down from its July estimate of $7.68 billion to $7.715 billion. In addition, Zimmer reported that the sales weakness was caused from a change in the supply chain infrastructure, which led to shortfalls in the availability of implants and instrument sets during the quarter.
On this news, Zimmer’s share price fell from $122.55 per share on October 28, 2016 to a closing price of $105.40 on October 31, 2016—a $17.15 or a 13.99% drop.
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Take Action
If you invested in Zimmer stock or options between September 7, 2016 and October 31, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/ZBH. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Zimmer’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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