Robbins Arroyo LLP: Endologix, Inc. (ELGX) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Endologix, Inc. (NASDAQGS: ELGX) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Endologix securities between August 2, 2016 and November 16, 2016, for alleged violations of the Securities Exchange Act of 1934 by Endologix’s officers and directors. Endologix develops, manufactures, markets, and sells medical devices for the treatment of abdominal aortic aneurysms in the United States and internationally. One of the company’s products, built on the platform of endovascular sealing (“EVAS”), is known as the Nellix EndoVascular Aneurysm Sealing System (“Nellix EVAS System”).
Endologix Accused of Misleading Investors About Its Product
According to the complaint, on August 2, 2016, Endologix officials projected an optimistic outlook for the Nellix EVAS System in a conference call with investors, stating, “We remain very positive about the likelihood of approval [for Nellix EVAS System] and the significant growth we expect to drive with Nellix.” Endologix also submitted a series of filings with the U.S. Securities and Exchange Commission attesting to the accuracy of financial reporting and the disclosure of all fraud. On November 1, 2016, Endologix touted its promising interaction with the U.S. Food and Drug Administration (“FDA”), stating that the company has “had a positive discussion so far.”
However, the complaint alleges that Endologix officials failed to disclose that the company did not have the requisite clinical data for FDA premarket approval of the Nellix EVAS System. On November 16, 2016, Endologix issued a press release revealing that the FDA requested that the company provide two-year patient follow-up data from the EVAS-FORWARD IDE Study of the Nellix EVAS System. On this news, Endologix’s stock fell $2.02 per share, or over 20.5%, to close at $7.82 per share on November 16, 2016.
Endologix Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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