Endologix Inc (NASDAQ: ELGX) Investor Securities Class Action Lawsuit 01/03/2017
January 3, 2017 - An investor in shares of Endologix Inc (NASDAQ: ELGX) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Endologix Inc in connection with certain allegedly false and misleading statements made between August 2, 2016 and November 16, 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of Endologix Inc (NASDAQ: ELGX) common shares between August 2, 2016 and November 16, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between August 2, 2016 and November 16, 2016 the Defendants made false and/or misleading statements and/or failed to disclose that Endologix Inc did not have the requisite clinical data for FDA premarket approval of its Nellix® EndoVascular Aneurysm Sealing System, and that as a result, Endologix Inc’s public statements were materially false and misleading at all relevant times.
Endologix Inc reported that its annual Total Revenue rose from $147.59 million in 2014 to $153.61 million in 2015 and that its Net Loss increased from $32.42 million in 2014 to $50.42 million in 2015.
On August 2, 2016, CEO John McDermott indicated that Endologix Inc would seek approval of the original version of the Nellix system that was used in the Nellix investigational device exemption (IDE) clinical trial, the EVAS FORWARD-IDE Study, given that Endologix Inc had the needed clinical data.
On November 16, 2016, Endologix Inc announced that the FDA has requested two-year follow-up data on patients enrolled in the EVAS-FORWARD-IDE study to assess Nellix. Shares of Endologix Inc (NASDAQ: ELGX) declined to as low as $6.22 per share on November 16, 2016.
On December 27, 2016, Endologix Inc announced a temporary hold on shipments of its AFX® Endovascular AAA System to complete an investigation of a manufacturing issue with some sizes of the device. Shares of Endologix Inc (NASDAQ: ELGX) declined to as low as $4.78 per share on December 28, 2016.
On January 3, 2017, NASDAQ: EGLX shares closed at $5.70 per share.