Insulet Corporation

Robbins Arroyo LLP: Insulet Corporation (PODD) Misled Shareholders According to a Shareholder Derivative Lawsuit

Robbins Arroyo LLP announces that a shareholder derivative complaint was filed on behalf of Insulet Corporation (NasdaqGS: PODD). The complaint is brought against certain current and former officers and directors for alleged breaches of fiduciary duties and unjust enrichment from May 7, 2013 through the present. Insulet, a medical device company, develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes in the United States and internationally. In 2013, Insulet began selling a new version of its infusion system known as the OmniPod Eros.

Insulet Accused of Concealing Glitches with its Infusion System

According to the complaint, Insulet officials repeatedly touted the functionality and quality of the Eros, the growth of Insulet’s OmniPod business, and the increase in the number of new Eros patients. However, Insulet was actually experiencing significant manufacturing and quality issues with Eros, including defective needle and alarm mechanisms. On January 7, 2015, Insulet disclosed that its fourth quarter 2014 revenue would be $5 to $8 million less than the company’s recent guidance due to reduced demand for Eros from Insulet’s distributors. Insulet’s Chief Executive Officer, Patrick Sullivan, subsequently admitted that Eros had experienced serious problems and that the company’s new patient growth in the U.S. had truly been declining rather than increasing over the past year. Insulet had been masking the deterioration in its core business by manipulating the use of the “new patient stats” metric, which were inflated and misleading.

Insulet Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.

 

Shareholder Information

Items marked with an asterisk (*) are required information.

First Name * Last Name *
Phone *
E-mail * Confirm: E-mail *
Number of Shares Owned:
Comments:

Please Note: Neither the submission to nor the receipt of information by Robbins Arroyo LLP or one of its attorneys through this website constitutes an agreement by our firm to represent the individual and does not create an attorney-client relationship. Please do not send confidential or sensitive information through this website. This information should be communicated through a direct contact with an individual at the firm.

* I have read the disclaimer information
+=

    Send This Post