FDA scrutiny cause shareholders to lash out at Spectranetics
This article was originally published in Clinica
Medical laser specialist Spectranetics has been hit with several securities class action lawsuits after its share price lost more than half its value overnight on news that the company was being investigated by the US FDA and US Immigration and Customs Enforcement. The inquiry, launched earlier this month, relates to alleged improper business practices by the Colorado Springs, Colorado-based company, specifically the promotion, use, testing, sales and marketing of certain Spectranetics products (see Clinica 1323, p 23). The firm has also been requested by the Denver office of the Securities and Exchange Commission to provide certain unspecified documents. It said it intends to co-operate fully with the investigation. Spectranetics' shares have been trading in the $5.63-3.98 range since September 3 – the stock was valued at around $9 per share around August.