A lawsuit brought up against STAAR Surgical Company (NASDAQ: STAA) years ago is now proceeding toward trial, according to the Shuman Law Firm. The case relates to misleading statements or hoarding of potential adverse facts by the management of STAA that led to loss of value for investors in the stock.
STAAR Surgical Company (NASDAQ: STAA) had attempted to dismiss the case, but a federal judge rejected its application, thus paving the way for the case to enter trial phase.
Shuman’s investigation of STAA and its officers revolve around disclosures regarding the company’s manufacturing facility in Monrovia. According to the law firm, the FDA in July 1, 2014 issued a warning letter to STAA that said its Monrovia facility had several regulatory violations. The letter followed the regulator’s inspection of the Monrovia plant.
Among other things, the FDA told STAA in the letter that the methods used in the production, packaging and storage of the implantable lenses at the Monrovia facility did not confirm with the manufacturing practices required of such a facility.
STAAR Surgical Company (NASDAQ:STAA) is engaged in the business of designing and manufacturing implantable lenses for vision correction.
According to Shuman, the disclosure of non-conformity of STAA’ Monrovia facility triggered a sharp descent in the stock, leaving investors with losses. The law firm recalls that shares of STAA were changing hands at $16 a piece in June 2014 and today that trade below $6, suggesting a nearly 65% pullback in the stock price.
Violation of fiduciary responsibility
With the declaration by the federal judge that the case against STAA can now proceed, Shuman is concerned with determining whether the officers of STAA breached their fiduciary responsibility. The firm is asking current shareholders in STAA who want to discuss their rights to contact it for more information.
What transpired in 1Q for STAAR Surgical Company (NASDAQ: STAA)?
STAAR Surgical Company (NASDAQ: STAA) posted an adjusted EPS loss of $0.01 on revenue of $19.3 million.