In re Intuitive Surgical Securities Litigation
Status: Ongoing Case
The Firm secures a string of favorable rulings in this securities class action against da Vinci Surgical System maker Intuitive Surgical, highlighting the strengths of lead plaintiffs’ allegations
The action was commenced on April 26, 2013.
On September 1, 2015, lead plaintiff Hawaii ERS and named plaintiff Greater Pennsylvania Carpenters’ Pension Fund (“Greater Pennsylvania”) filed a motion for class certification. Following briefing on the motion and oral argument, on December 22, 2016, the Court issued an Order granting the class certification motion, certifying the Class as defined above, appointing lead plaintiff Hawaii ERS and named plaintiff Greater Pennsylvania as “Class Representatives,” and appointing lead counsel as “Class Counsel.”
The operative complaint in the Action, the Second Amended Consolidated Complaint (“Complaint”), was filed on January 26, 2017.
On February 9, 2017, Defendants moved to dismiss the Complaint. On September 29, 2017, the Court issued an Order denying Defendants’ motion to dismiss in its entirety.
Fact discovery concluded on September 30, 2016. Expert discovery concluded on December 15, 2017. A trial date in this Action has been set for October 30, 2018.
The case is In re Intuitive Surgical Securities Litigation, No. 13-cv-01920 (N.D. Cal.). Labaton Sucharow represents lead plaintiff Employees’ Retirement System of the State of Hawaii. The defendants are Intuitive Surgical, Inc. and its CEO Gary Guthart, CFO Marshall Mohr, and Chairman Lonnie Smith.
Investors began to learn the truth about da Vinci’s defect in February 2013. At that time, it was announced that the FDA was conducting a survey of da Vinci surgeons to determine whether an increased number of reported adverse surgical events was caused by problems with the robot. In April and July 2013, the company disclosed that, amidst the negative news about da Vinci and the FDA probe, procedure growth was lower than anticipated. On July 18, 2013, the seriousness of Intuitive’s misconduct was revealed when the company announced that it had received a Warning Letter from the FDA identifying the numerous ways in which the company had violated regulatory requirements and failed to properly report corrective actions related to da Vinci health risks. As a result of this fraud, Intuitive’s stock price fell 68 percent, from $573.52 on February 27, 2013 to $392.67 on July 19, 2013.