Philadelphia, Pennsylvania--(Newsfile Corp. - June 1, 2023) - Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Cutera, Inc. ("Cutera") (NASDAQ: CUTR) on behalf of those who purchased Cutera securities between February 17, 2021 and May 9, 2023, inclusive (the "Class Period").
Investor Deadline: Investors who purchased or acquired Cutera securities during the Class Period may, no later than July 24, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (267) 637-3176, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/cutera-inc.
Cutera, based in Brisbane, CA, is a medical aesthetic device company that provides equipment for beauty treatments. The complaint alleges that the Company and senior management repeatedly assured investors that Cutera would deliver sustainable revenue growth as the COVID-19 pandemic subsided, but while doing so, Defendants concealed a lack of adequate internal control over financial reporting, as well as conflicts plaguing certain officers and directors.
Investors learned the true state of the Company through a series of disclosures beginning on January 9, 2023. On that date, in reporting its preliminary financial results for full-year 2022, Cutera reported that it had failed to meet its revenue guidance for 2022. On this news, the price of Cutera common stock declined $9.41 per share, or more than 23%, to close at $31.04 per share on January 9, 2023.
On February 28, 2023, Cutera filed a Notification of Late Filing with the SEC and reported that it "ha[d] identified and expect[ed] to disclose in the Form 10-K material weaknesses in its internal control over financial reporting related to . . . ineffective inventory count controls."
On March 16, 2023, Cutera announced that it would not meet the extended deadline for filing its 2022 annual report. The Company also revealed that, in addition to the previously identified material weaknesses, Cutera had identified a material weaknesses related to stock-based compensation. On this news, the price of Cutera common stock declined $3.49 per share, or approximately 12.5%, to close at $24.36 per share on March 17, 2023.
On April 7, 2023, Cutera disclosed that the company's Executive Chairman had demanded a special meeting of the shareholders to vote on the removal of five members of the Board.
On April 10, 2023, both the Chairman and the CEO issued statements in support of their separate demands calling for the Board to remove five of its directors for a failure to develop a succession plan for the CEO. The Chair and CEO asserted that these five directors were attempting to position another director for the CEO role.
On April 12, 2023, Cutera revealed that it had terminated the Chairman and the CEO, and further, it formally withdrew its full-year 2023 financial guidance. On this news, the price of Cutera common stock declined $7.63 per share, or more than 28%, to close at $19.44 per share on April 12, 2023.
Finally, on May 9, 2023, Cutera reported disappointing financial results for the first quarter 2023 due to "execution challenges," and further reported the resignation of the CFO. On this news, the price of Cutera common stock declined $6.06 per share over two trading sessions, or 30%, to close at $14.14 per share on May 11, 2023.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Whistleblowers: Anyone with non-public information regarding Cutera is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., San Diego, San Francisco, Chicago, and Toronto has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/168352