LOS ANGELES--(BUSINESS WIRE)--
Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Northern District of Indiana on behalf of a class (the “Class”) consisting of persons and entities that purchased or otherwise acquired Zimmer Biomet Holdings, Inc. (“Zimmer” or the “Company”) (NYSE: ZBH) securities between September 7, 2016 and October 31, 2016, inclusive (the “Class Period”).
If you are a member of the Class described above, you may move the Court no later than 60 days from the date of this notice, to serve as lead plaintiff. Please contact Lesley Portnoy at 888-773-9224 or 310-201-9150, or at [email protected] to discuss this matter.
Zimmer, through various subsidiaries and related entities, designs develops and manufactures medical equipment. The company offers orthopedic and dental reconstructive implants, spinal implants, trauma products, and related surgical products.
According to the complaint filed in this lawsuit, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that supply chain problems led to a decrease in order fulfillment rates, most notably within Zimmer’s knee and hip portfolios; (2) that, as such, the Company would not achieve its revenues and profit forecast; and (3) that, as a result of the foregoing, Defendants’ statements about Zimmer’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On October 31, 2016, the Company published a press release reporting 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 the $7.68 billion to $7.715 billion estimated in July. The Company reported that the sales weakness stemmed from a change in the supply chain infrastructure, which led to shortfalls in the availability of implants and instrument sets during the quarter.
Following the press release, in a conference call with investors, the Defendant Florin 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.”
On this news shares of Zimmer fell $17.15 per share, or nearly 14%, to close on October 31, 2016 at $105.40 per share.
If you purchased shares of Zimmer during the Class Period you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to [email protected], or visit our website at http://www.glancylaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161202005629/en/
