NuVasive, Inc. Sued by Investor
Robbins Arroyo LLP announce that an investor of NuVasive, Inc. (NASDAQ: NUVA) (“NuVasive”) has filed a complaint in the U.S. District Court for the Southern District of California. The complaint alleges that the company and certain of its officers violated the Securities Exchange Act of 1934 between October 22, 2008 and July 30, 2013 (the “Class Period”). NuVasive designs, develops, and markets minimally disruptive surgical products and procedurally integrated solutions for the spine.
NuVasive Accused of Making False and Misleading Statements
According to the complaint, certain NuVasive officers made false and misleading statements and failed to disclose information regarding the company’s operation, and business prospects. Specifically, the complaint alleges that, throughout the Class Period, the company and certain of its officers disseminated false and misleading statements and/or failed to disclose that company failed to maintain an effective compliance program as set forth by the U.S. Department of Health and Human Services (“HHS”). Further, because the company lacked an effective compliance program, NuVasive failed to detect that the company had been violating the False Claims Act by submitting false claims to Medicare and Medicaid. As a result of the foregoing, NuVasive shares traded at artificially inflated prices during the Class Period.
NuVasive Stock Drops on News of HHS Investigation
On July 30, 2013, according to the complaint, NuVasive disclosed in a regulatory filing that the company was being investigated by the HHS and had received a subpoena requesting documents for the period January 2007 through April 2013. The subpoenaed documents relate to the agency’s investigation into possible false claims submitted by NuVasive to Medicare and Medicaid. On this news, NuVasive shares dropped 12%, or $3.28 per share, to close at $22.84 on July 31, 2013.
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