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New York, New York--(Newsfile Corp. - February 11, 2021) - Pomerantz LLP is investigating claims on behalf of investors of Penumbra, Inc. ("Penumbra" or the "Company") (NYSE: PEN). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether Penumbra and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On September 14, 2020, the Foundation for Financial Journalism (the "FFJ") published an article raising serious questions about the safety profile of the Company's Jet 7 Xtra Flex catheter, a flagship product. The FFJ noted that since the product's introduction in mid-2019, a U.S. Food and Drug Administration database had recorded 12 deaths associated with the product's use. On this news, Penumbra's stock price fell by nearly 3%, from $199.43 per share on September 13, 2020 to $193.66 per share on September 14, 2020, a decline of $5.77 per share.
On November 9, 2020, Quintessential Capital Management ("QCM") released a presentation, entitled "Penumbra and Its Killer Catheter," detailing injuries and deaths resulting from Jet 7 Xtra Flex malfunctions, and highlighting that Penumbra had not issued any notice to U.S. healthcare providers concerning the device's safety issues until more than a month after the Company's Japanese distributor sent out a warning, and more than nine months after the first patient died from the product's malfunction. QCM accused Penumbra of a "seemingly blatant disregard for patients' lives" and essentially "blaming doctors" for the devices' design defects. On November 23, 2020, the Journal of NeuroInterventional Surgery published an article presenting the cases of three patients who suffered as a result of Jet 7 Xtra Flex device malfunctions, including two fatalities. As news of the journal article circulated over the following two days, Penumbra's stock price fell from $254.71 on November 23, 2020 to $224.12 on November 25, 2020, a decline of about 12%.
On December 8, 2020, QCM issued another report reiterating its prior assertions and disclosing additional facts about the Jet 7 Xtra Flex's safety issues. Among other things, QCM's second report questioned the validity and independence of the scientific research supporting the Jet 7 Xtra Flex's safety, and accused the Company of using a fake author to publish studies regarding the purported safety and efficacy of its products. In response, Penumbra's stock price fell by 9%, from $224.02 per share on December 7, 2020 to $204.07 per share on December 8, 2020, a decline of $19.95 per share.