A shareholder class action complaint has been filed against Intersect ENT, Inc. (“Intersect”) on behalf of investors who purchased shares of Intersect stock (NasdaqGM: XENT) between August 1, 2018 and May 6, 2019 (the “Class Period”).
If you purchased shares of Intersect ENT and suffered damages, please click Join a Securities Class Action or contact either John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], or Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the class action investigation or lawsuit.
XENT investors have until July 15, 2019 to move the Court to serve as lead plaintiff.
Intersect is a commercial drug delivery company that purports to develop products for patients with ear, nose, and throat conditions. Intersect’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.
According to the complaint, during the Class Period, the defendants made a series of false and misleading statements to investors, and failed to disclose that: (1) Intersect lacked adequate reimbursement representatives to ensure physicians had access to SINUVA; (2) that, as a result, Intersect’s sales force would focus on ensuring reimbursement; (3) that, as a result, the Company’s sales representatives were less focused on driving sales; (4) that physicians were less likely to adopt Intersect’s SINUVA due to transaction costs associated with seeking reimbursement; and (5) that Intersect would increase staffing to address these issues.
On August 1, 2018, before the market opened, Intersect disclosed that it faced certain challenges with the launch of SINUVA, which had negatively impacted Intersect’s second quarter 2018 financial results. On this news, the Company’s share price fell $6.30 per share, or nearly 20% in value, to close on August 1, 2018 at $26.05 per share.
On May 6, 2019, Intersect disclosed a first quarter 2019 loss of $10.8 million and lowered guidance for the remainder of 2019. Intersect also reported that defendant Earnhardt, Intersect’s CEO of 11 years, resigned. On this news, Intersect’s share price fell an additional $8.05 per share, or more than 25% in value, to close on May 7, 2019 at $25.10 per share.