IRVINE, Calif.--(BUSINESS WIRE)--
Khang & Khang LLP (the “Firm”) announces a class action lawsuit against Zimmer Biomet Holdings, Inc. (“Zimmer” or the “Company”) (NYSE: ZBH). Investors, who purchased or otherwise acquired shares between September 7, 2016 and October 31, 2016 inclusive (the “Class Period”), are encouraged to contact the Firm in advance of the January 31, 2017 lead plaintiff motion deadline.
If you purchased shares of Zimmer during the Class Period, please contact Joon M. Khang, Esquire, of Khang & Khang, 18101 Von Karman Avenue, 3rd Floor, Irvine, CA 92612, by telephone: (949) 419-3834, or by e-mail at [email protected].
There has been no class certification in this case yet. Until certification occurs, you are not represented by an attorney. You may choose to take no action and remain a passive class member.
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: 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 realize its revenues and profit as expected 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 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.”
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.
If you wish to learn more about this lawsuit at no charge to you, or if you have questions concerning this notice or your rights, please contact Joon M. Khang, a prominent litigator for almost two decades, by telephone: (949) 419-3834, or by e-mail at [email protected].
This press release may constitute Attorney Advertising in certain jurisdictions.
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