NEW YORK, Oct. 31, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Establishment Labs Holdings Inc. (NASDAQ: ESTA), FIGS, Inc. (NYSE: FIGS), and Accelerate Diagnostics, Inc. (NASDAQ: AXDX). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
Establishment Labs Holdings Inc. (NASDAQ: ESTA)
On October 19, 2022, market analyst Hindenburg Research published a report entitled “Establishment Labs: A Financially Stretched Silicone Safety Charade” which alleged, among other things, that “[d]espite claims of superior safety, we found that almost all key safety studies touted by the company have conflicts of interest, with many undisclosed or under-disclosed.” Further, the report alleged that “Establishment claims to have successfully piloted a ‘revolutionary’ technique to place implants through the armpit using local anesthesia (instead of general), claiming the technique will greatly expand its Total Addressable Market (TAM). This type of insertion has been reported since the 1970s and has been widely available for almost 20 years. It has failed to gain traction due to safety risks.”
The report also alleged that “[b]eyond undisclosed safety questions, we have also identified financial risks. Import/export records show that Establishment ships product to entities formerly owned by the CEO and his family, raising questions of conflicts of interest.”
On this news, share price fell by 17% when the market opened on October 19, 2022.
For more information on the Establishment investigation go to: https://bespc.com/cases/ESTA
FIGS, Inc. (NYSE: FIGS)
After the market closed on October 18, 2022, Seeking Alpha published an article on a pending lawsuit against healthcare apparel company, FIGS, Inc., in which plaintiff's counsel stated:
"As I said in court today, our evidence will show during this trial that FIGS founders Heather Hasson and Trina Spear advertised that they invented a proprietary chemical to make their scrubs anti-microbial, kill bacteria immediately on contact, and repel liquid - even though they never did so, and knew it was false…They continued to do this even in the face of internal, expert, and consumer pushback. FIGS will not provide any scientific evidence to support their claims or the breakdown of their supposed chemical treatment for scrubs."
Previously on September 7, 2022, Spruce Point Capital Management issued a short report on FIGS with allegations including: a history of misstating financial and business metrics going back prior to the company's May 2021 IPO, overstating total addressable market, and its founders "exaggerating their professional work history."
On this news, shares of FIGS fell by more than 10% in intraday trading on October 19, 2022.
For more information on the FIGS investigation go to: https://bespc.com/cases/FIGS
Accelerate Diagnostics, Inc. (NASDAQ: AXDX)
After the market closed on October 21, 2022, Accelerate Diagnostics disclosed receiving a request from the U.S. Food and Drug Administration for the company to immediately discontinue marketing and distribution of its Accelerate Arc system and related BC Kit for a particular diagnostic use.
Previously, Accelerate Diagnostics had been marketing the Accelerate Arc products as Class I devices, exempting them from 510(k) clearance requirements. Recently, the FDA informed the company that marketing the products in the U.S. requires 510(k) clearance.
Shares of Accelerate Diagnostics stock dropped approximately 9% in premarket trading and were down more than 40% in intraday trading on October 24, 2022.
For more information on the Accelerate Diagnostics investigation go to: https://bespc.com/cases/AXDX
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.