BOSTON, Feb. 04, 2021 (GLOBE NEWSWIRE) -- Nationally-recognized securities law firm Block & Leviton LLP (www.blockleviton.com) announces that a lawsuit for violation of the federal securities laws has been filed against Penumbra, Inc. (NYSE: PEN) and certain of its executives.

After the markets closed on December 15, 2020, Penumbra stunned the market when it announced that it was voluntarily recalling all configurations of its Jet® 7 Reperfusion Catheter with Xtra Flex technology. The Company stated that the catheter “may become susceptible to distal tip damage during use,” which could lead to “patient injury or death.” On this news, shares fell significantly in aftermarket trading.

This recall came on the heels of a November 10, 2020 research report released by Quintessential Capital Management (“QCM”) entitled “Penumbra and its ‘Killer Catheter’: A tale of corporate greed and seemingly blatant disregard for patients’ lives[.]” QCM stated that it received “expert opinions from multiple surgeons and former senior FDA personnel,” leaving QCM “confident that Penumbra’s flagship device may be on the verge of a class 1 recall by the FDA.”

Then on December 8, 2020, QCM released another research report entitled “Is Penumbra’s core scientific research authored by a fake person?: The incredible story of Penumbra’s Dr. Antik Bose[.]” In this second report, QCM alleged that some of the Company’s research papers appeared to have been incorrectly attributed to, or perhaps even authored by, a fake individual.

By the end of 2020, Penumbra shares were trading at approximately $175.00 each, down from the November 10, 2020 closing price of over $261.00 per share. This represents billions of dollars in lost market capitalization.

A lawsuit has been filed against Penumbra and certain of its executives in the U.S. District Court for the Northern District of California. The lawsuit is captioned Williams v. Penumbra, Inc., et al., No. 3:21-cv-00420 (N.D. Cal.). The suit alleges that Penumbra misled investors as to design defects and risks associated with the Jet 7 Xtra Flex catheter and the likelihood of its recall.

If you purchased or acquired shares of Penumbra between August 3, 2020 and December 15, 2020, you are strongly encouraged to contact the nationally-recognized securities law firm Block & Leviton LLP (www.blockleviton.com), at (617) 398-5600, via email at cases@blockleviton.com, or at https://www.blockleviton.com/cases/pen. The deadline to move the Court to be appointed lead plaintiff is March 16, 2021.

Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.

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CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (617) 398-5600
Email: cases@blockleviton.com 
SOURCE: Block & Leviton LLP
www.blockleviton.com