The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Nothern District of California on behalf of those who acquired Cutera, Inc. (“Cutera” or the “Company”) (NASDAQ: CUTR) securities during the period from February 17, 2021 through May 9, 2023 (the “Class Period”). Investors have until July 24, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Cutera is a medical aesthetic device company that provides equipment for beauty treatments.
On January 9, 2023, Cutera announced its preliminary financial results for the full-year 2022. Despite assuring investors just two months earlier that the Company would finish the year “at the upper end of revenue guidance of $255 million to $260 million,” Defendants revealed that the Company now expected revenue between $252 million and $253 million. On this news, the price of Cutera shares declined by $9.41 per share, or approximately 23.26%, from $40.45 per share to close at $31.04 on January 9, 2023.
On February 28, 2023, Cutera filed a Notification of Late Filing with the SEC, reporting that the Company would not be able to timely file its annual financial report on Form 10-K by the March 1, 2023 deadline because “[a]dditional time is required to complete the Form 10-K, including the financial statements that will be filed as part of the Form 10-K and management’s assessment of the Company’s internal control over financial reporting.” On this news, the price of Cutera shares declined by $0.32 per share, or approximately 0.99%, from $32.43 per share to close at $32.11 on March 1, 2023.
On March 16, 2023, the Company filed a second Notification of Late Filing with the SEC, explaining that it would not meet the extended deadline to file its 2022 Annual Report. In this filing, Defendants noted that “[t]he Company 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 and stock-based compensation.” On this news, the price of Cutera shares declined by $3.49 per share, or approximately 12.53%, from $27.85 per share to close at $24.36 on March 17, 2023.
On March 24, 2023, the Company filed a Form 8-K regarding a “Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing” with the SEC, disclosing that Cutera had received “a notice . . . from the Listing Qualifications Department of [Nasdaq] on March 21, 2023 indicating that the Company is not currently in compliance with Nasdaq’s Listing Rules . . . due to the Company’s inability to timely file its Form 10-K for the year ended December 31, 2022 . . . with the [SEC].” On this news, the price of Cutera shares declined by $0.92 per share, or approximately 3.40%, from $27.07 per share to close at $26.15 on March 27, 2023.
On April 12, 2023, the Company announced that, on April 11, 2023, the Board had terminated J. Daniel Plants “with cause” as Cutera’s Executive Chairman and Chairman of the Board and Defendant David H. Mowry “with cause” as Cutera’s Chief Executive Officer. The Company explained that the terminations of Defendants Plants and Mowry came “following joint and unanimous recommendations from a special committee comprising all members of the Board’s Governance and Corporate Responsibility Committee and the majority of the members of the Board of Directors.” On this news, the price of Cutera shares declined by $7.63 per share, or approximately 28.19%, from $27.07 per share to close at $19.44 on April 12, 2023.
On May 9, 2023, the Company reported disappointing financial results for the first quarter 2023 that were “below expectations due to execution challenges in the business” and announced that Defendant Rohan Seth had resigned as the Company’s Chief Financial Officer on May 3, 2023 but would remain with the Company in an advisory capacity until May 26, 2023. On this news, the price of Cutera shares declined by $3.52 per share, or approximately 19.93%, from $17.66 per share to close at $14.14 on May 11, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Defendants had overstated the sustainability of Cutera’s revenue growth; (ii) there were significant conflicts among members of the Company’s senior leadership and Board; and (iii) there were several material weaknesses in the Company’s internal control over financial reporting.
If you purchased or otherwise acquired Cutera securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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