Forward-Looking Statement Disclosures Have Never Been More Important for Medtech Companies

Executives at public medtech companies won't soon forget the current earnings season. At a time of year when companies typically offer investors insight regarding annual revenue projections, the global pandemic has made such forecasting all but impossible to do. A lot of medtech companies – including Boston Scientific, Zimmer Biomet, NuVasive, and Endologix – have opted to withdraw revenue guidance this year, while other companies have tried to adjust their earnings forecast as conservatively as possible based on current knowledge and expectations. Unfortunately, this may be a "damned if you do, damned if you don't" situation when plaintiffs' firms go fishing for stock-drop cases. Theresa Bevilacqua, a partner at the international law firm Dorsey & Whitney and chair of its Minneapolis Trial Group, told MD+DI that she hasn't seen a lot of lawsuits yet on the securities front as it would relate to COVID-specific claims, but she is anticipating a rise in those types of cases based on what has happened during past economic downturns like 2008, 9-11, and the dot-com bubble. Securities laws are set up to provide right of action for fraud in connection with the purchase or sale of a security, she said, and usually that's based on material misinformation given by publicly traded company with respect to its quarterly financial statements and earnings calls. "Anytime you have widespread market volatility like you have now, it puts publicly traded...
Source: MDDI - Category: Medical Devices Authors: Tags: COVID-19 Regulatory and Compliance Source Type: news