LOS ANGELES--(EON: Enhanced Online News)--Lundin Law PC, a shareholder rights firm, announces a class action lawsuit against Zimmer Biomet Holdings, Inc. (“Zimmer” or the “Company”) (NYSE: ZBH) concerning possible violations of federal securities laws between September 7, 2016 and October 31, 2016 inclusive (the “Class Period”). Investors, who purchased or otherwise acquired Tenet shares during the Class Period, are encouraged to contact the firm in advance of the January 31, 2016 lead plaintiff motion deadline.
Per the complaint, 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 is as follows: that issues within the supply chain caused a decline in order fulfillment, particularly within the knee and hip portfolios; that, because of this, Zimmer would not achieve its revenues and profit as anticipated and; 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 issued 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 maintains that 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 conference with investors following 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, shares of Zimmer fell $17.15 per share, or nearly 14%, to close on October 31, 2016 at $105.40 per share, causing investors serious harm.
No class has been certified in the above action. Until a class is certified, you are not considered represented by an attorney. You may also choose to do nothing and be an absent class member.
Lundin Law PC was established by Brian Lundin, a securities litigator based in Los Angeles dedicated to upholding the rights of shareholders.
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