| Company: | Intuitive Surgical, Inc |
| Ticker Symbol: | INTU |
| Class Period: | Feb-1-08 to Jan-7-09 |
| Date Filed: | Aug-12-10 |
| Lead Plaintiff Deadline: | Oct-11-10 |
| Court: | Northern District of California |
| Allegations: | |
The complaint names Intuitive Surgical, Inc., and certain officers and directors of the Company, as defendants. The complaint alleges that during the Class Period, defendants issued false and misleading statements and omissions of material facts regarding the Company's true business prospects and financial results. Specifically, defendants claimed that the "perceived advantages" of the then-existing and potential market for Intuitive's key product, the da Vinci robot (a robotic surgical device), were causing increasing demand for surgical procedures using the da Vinci over traditional human-controlled surgical procedures. According to the defendants, this increased demand for da Vinci robots would cause hospitals to buy even more of the Company's surgical products from which Defendants would reap increasing annuity-like revenue because each robotic procedure required the hospital to use the Company's related products and services.
Defendants' public statements were materially false and misleading when made because they failed to disclose, among other things: (a) a majority of the Company's potential clients had already purchased a da Vinci; and (b) due to the failing economy, the Company's key clients, including the very hospitals which Defendants had previously depended upon for sales, were cutting capital expenditures in the face of rising interest rates, tight credit markets, recession, rising deductibles, and inflationary fears, leaving most hospitals in no position to even contemplate the purchase of a da Vinci. As a result of defendants' false statements, Intuitive's securities traded at artificially inflated prices during the Class Period.
On January 7, 2009, Intuitive shocked investors when, after the close of the market, it issued a pre-announcement of its fourth quarter results which stated that, contrary to the Company's previous optimistic predictions of continued growth in the use of da Vinci systems across a widening number surgical procedures, and upward revisions in their system revenue forecast, the company expected systems revenue to remain flat. This proved to be just one of several shocking revelations that would send Intuitive's share price spiraling downward. Following the announcement, Intuitive's stock price plummeted more than 6% from a close of $117.88 on January 6, 2009 to a close of $110.54 on January 8, 2009.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
