Company: Intersect ENT, Inc.
Class Period: August 1, 2018 — May 6, 2019
Court: U.S.D.C. – Northern District of California
A shareholder class action complaint has been filed against Intersect ENT, Inc. (“Intersect” or the “Company”) on behalf of investors who purchased shares of the Company’s stock between August 1, 2018 and May 6, 2019 (the “Class Period”).
Intersect is a commercial drug delivery company that purports to develop products for patients with ear, nose, and throat conditions. The Company’s PROPEL family of products are used in conjunction with sinus surgery, and the Company’s SINUVA sinus implant is used to treat patients who have had surgery yet suffer from recurrent sinus obstruction due to polyps.
The shareholder class action complaint alleges that Intersect issued a series of false and misleading statements to investors during the Class Period, and failed to disclose: (i) that the Company lacked adequate reimbursement representatives to ensure physicians had access to SINUVA; (ii) that, as a result, the Company’s sales force would focus on ensuring reimbursement; (iii) that, as a result, the Company’s sales representatives were less focused on driving sales; (iv) that physicians were less likely to adopt the Company’s SINUVA due to transaction costs associated with seeking reimbursement; and (iv) that the Company would increase staffing to address these issues.
On May 6, 2019, Intersect reported a quarterly loss of $10.8 million, lowered its revenue guidance for fiscal 2019, and disclosed that that its long-time Chief Executive Officer would be resigning. Following this news, shares of the Company’s stock declined $8.05 per share, or nearly 25% in value, to close on May 7, 2019 at $25.10 per share.
Intersect stockholders who purchased the Company’s shares prior to August 1, 2018 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740, or by completing the information form on this page, to discuss this action and their legal rights and options.