Stereotaxis Class Action Lawsuit
Stereotaxis Inc (Nasdaq: STXS) is being sued by shareholders for fraud by allegedly pumping up the value of its stock.
Stereotaxis, a St Louis based company makes a computerized cardiology control system, called Niobe, that helps doctors in treating arrhythmias and coronary artery disease. The Company also makes the Odyssey system for viewing and recording of live surgery.
The lawsuit alleges that STXS made materially false and misleading statements beginning on February 28, 2011. The statements were issued by CEO Michael Kaminski, and the officers and directors about the business condition and future prospects of the Company which caused shares of STSX to trade at artificially high prices.
Specifically the lawsuit alleges STSX failed to disclose to investors material adverse facts that:
(1) Stereotaxis was not able to leverage its extensive portfolio and scale of products and services in a strategically beneficial manner
(2) Stereotaxis failed to explain market feedback from users of STSX technology was "mixed"
(3) That the Niobe system was far from the "standard of care" and needed "fundamental product improvements"
(4) That demand for the Niobe and Odyssey systems was weakening, and that the number of units being sold was decreasing
(5) That the number of orders did not fairly represent future revenue the Company expected to recognize
(6) Stereotaxis overstated its market advantages.
On August 8, 2011, Stereotaxis announced financial results for the second quarter of 2011 that revealed that STSX was performing well below stated expectations. Also STSX was forced to suspend its guidance for the entire year 2011, and the CFO Daniel Johnston resigned.
On this news shares of Stereotaxis declined by more than 58% of their value, closing on August 9, 2011 at just $1.19 per share.
Did you sustain losses? Upset? Kyros Law is investigating the allegations on behalf of STSX shareholders, please call us now.
If you are a shareholder STSX please call Attorney Bill Kyros at 1-800-934-2921 to discuss your rights.
Kyros Law is a Boston-based law firm with significant experience representing investors in shareholder class actions, shareholder derivative actions, and securities fraud class actions. For info about our law firm please our Kyros Law web site.