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A new class action lawsuit filed in New York federal court accuses 3D Systems Corporation of misleading investors about the company’s internal financial controls.
The proposed class action was filed April 9 by Plaintiff Troy Kehoe on behalf of anyone who purchased publicly traded securities of 3D Systems between May 6, 2020 and March 1, 2021.
The class action names the company — as well as several of its leaders, including former CEO Vyomesh I. Joshi and current CEO Jeffrey A. Graves — as defendants.
3D Systems, which according to its website, “provides comprehensive products and services” including 3D printers and printing materials, made numerous statements attesting to the soundness of its controls over financial reporting from May 2020 until early last month, when the company announced it would delay filing its annual report on Form 10-K with the federal Securities and Exchange Commission (SEC).
The annual report is meant to provide an overview of a company’s business and financial condition with audited financial statements.
In making that announcement, the company said the delay in filing was “primarily related to the presentation of cash flows associated with the divestiture process for its Cimatron and GibbsCam software business.”
On March 2, 2021, 3D Systems filed a form with the SEC declaring it would delay its annual report for the reasons it had previously stated.
On that news, 3D Systems’ stock price fell $7.62 per share, or nearly 20%, according to the lawsuit. The stock dropped from a closing price of $38.79 per share on March 1 to a closing price of $31.17 per share on March 2, which the class action lawsuit claims damaged investors.
“As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class Members have suffered significant losses and damages,” the class action says.
It accuses the company and its individual leaders of knowingly releasing false information about 3D Systems’ financial situation.
“During the Class Period, the Company and the Individual Defendants, individually and in concert, directly or indirectly, disseminated or approved false statements specified above, which they knew or deliberately disregarded were misleading in that they contained misrepresentations and failed to disclose material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading,” the class action says.
Kehoe, on behalf of the other Class Members, is seeking for 3D Systems to pay damages suffered by investors when the company’s stock price dropped, as well as legal fees.
3D Systems is not the only company to be sued for allegedly releasing misleading information that influenced stock prices. Last month, three lawsuits were filed against Bit Digital, Neptune, and Sequential Brands, claiming investors were duped by artificially inflated stock prices.
Did you purchase stock shares of 3D Systems between May 6, 2020, and March 1, 2021? Let us know in the comment section below.
The 3D Systems Stock Class Action Lawsuit is Troy Kehoe v. 3D Systems Corp., Vyomesh I. Joshi, Todd A. Booth, Jeffrey A. Graves, Wayne Pensky, Jagtar Narula, Case. No. 1:21-cv-01920, in the U.S. District Court for the Eastern District of New York.
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3 thoughts onNew Class Action Lawsuit Accuses 3D Systems of Misleading Investors
I purchased this stock during the time period through Fidelity investments and filled out and turned in the forms online, how do i find out about receiving compensation for this settlement??
I bought 2 shares of 3D systems inc on 02/22/21.
I have 100 shares.