Robbins Arroyo LLP: Sientra, Inc. (SIEN) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a securities fraud class action complaint was filed in the U.S. District Court for the Central District of California. The complaint alleges that officers and directors of Sientra, Inc. (NASDAQGS: SIEN) violated the Securities Exchange Act of 1934 between March 18, 2015 and September 24, 2015, by making materially false and misleading statements about Sientra’s business prospects. Sientra, a medical aesthetics company, develops and sells medical aesthetics products to plastic surgeons in the United States. The exclusive manufacturer of its products is Silimed, a company headquartered in Brazil.
Sientra Fails to Disclose Quality Control Risks at its Manufacturing Plant
According to the complaint, Sientra officials failed to disclose that Sientra’s exclusive reliance on Silimed’s Brazilian manufacturing facilities carried significant quality control risks and that the manufacturing processes at the Silimed Rio de Janeiro manufacturing plant were contaminated. On March 18, 2015, Sientra filed its Form 10-K with the U.S. Securities and Exchange Commission, which stated that it was primarily responsible for the manufacturing and quality assurance of its products. The report further stated that when the company receives products from Silimed, it inspects the products prior to shipping them to its customers.
On September 24, 2015, the United Kingdom’s Medicines and Healthcare Products Regulatory Agency suspended sales of Silimed products after an audit of Silimed’s manufacturing processes revealed contamination in the manufacturing plant. On this news, Sientra stock fell $10.88, or nearly 52.9%, to close at $9.70 per share on September 24, 2015.
Sientra 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.