Outset Medical (OM) Shares Down 94% Since Disclosing FDA Warning Letter, Morgan Stanley And JPMorgan Chase Unload Most Of Their Positions In OM Shares – Hagens Berman
OM Investors with Losses Encouraged to Contact the Firm
SAN FRANCISCO, Oct. 16, 2024 (GLOBE NEWSWIRE) — Outset Medical, Inc. (NASDAQ: OM) is facing a perilous situation as it grapples with a potential delisting from the Nasdaq and a class-action lawsuit alleging investor fraud.
In a notice received on September 23, 2024, the company was informed that its common stock price had fallen below $1.00 per share for 30 consecutive trading days, violating Nasdaq’s minimum bid price requirement. Unless Outset Medical can achieve a closing bid price of at least $1.00 per share for 10 consecutive trading days before March 24, 2025, it risks delisting.
The delisting threat comes on the heels of a securities class-action lawsuit filed against Outset Medical and several of its executives.
Hagens Berman encourages Outset Medical investors who suffered substantial losses to submit your losses now.
Class Period: Aug. 1, 2022 – Aug. 7, 2024
Lead Plaintiff Deadline: Oct. 28, 2024
Visit: www.hbsslaw.com/investor-fraud/om
Contact the Firm Now: [email protected]
844-916-0895
Outset Medical, Inc. (OM) Securities Class Action:
The suit alleges that the company misled investors about its Tablo products, which were being marketed for a use not approved by the Food and Drug Administration (FDA). Additionally, the company was accused of facing significant risks related to the FDA warning letter and the potential need for additional regulatory approvals.
The FDA warning letter, issued on July 7, 2023, stated that Outset Medical was promoting the TabloCart product without proper authorization. In response, the company paused shipments of the product and announced plans to submit an additional 510(k) application to the FDA.
The regulatory challenges and subsequent investor concerns have had a devastating impact on Outset Medical’s stock price. Since the FDA warning letter, the company’s shares have plummeted by over 94%.
The developments at Outset Medical have prompted shareholder rights firm Hagens Berman to commence an investigation into the allegations and potential violations of the U.S. securities laws.
“We’re investigating whether Outset Medical intentionally circumvented FDA regulations and deceived investors,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Outset Medical and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Outset Medical case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Outset Medical should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
