Gilman Law Investigates Lawsuit Against Stereotaxis, Inc.
Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Stereotaxis, Inc. (“Stereotaxis”) and certain of its officers and directors violated the Securities Exchange Act 1940. Stereotaxis designs, manufactures, and markets a cardiology instrument control system, called Niobe system, for use in a hospital’s interventional surgical suite to enhance the treatment of coronary artery disease and arrhythmias. Stereotaxis also markets the Odyssey system which is a data management solution for remote viewing and recording of live interventional cases.
For over 40 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm specializes in cases involving stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired shares of Stereotaxis, Inc. (NASDAQ: STXS) between October 7, 2011 and December 6, 2011 and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP, by no later than December 6, 2011 to discuss your rights, including as to recovery of your losses or to obtain additional information.
Failure to Disclose Information
A class action lawsuit has been commenced in the United States District Court for the Eastern District of Missouri on behalf of purchasers of the common stock of Stereotaxis. The Complaint alleges that Stereotaxis issued materially false and misleading statements regarding the Company’s financial condition and future business prospects during the Class Period. Stereo taxis allegedly failed to disclose that the Company’s business model was not working because the Company was unable to leverage its extensive portfolio and scale of products and services in a strategically beneficial manner. The suit further alleges that market feedback from users of the technology was “mixed” and therefore wide adoption was not predictable. In addition, demand for the Niobe and Odyssey systems was weak and the number of units being sold were decreasing. The Company also allegedly overstated its market edge and grossly overstated their financial guidance for 2011. As a result, Defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
Artificially Inflated Stock Prices
Stereotaxis’s misleading statements concerning the increased demand for its products and the Company’s market edge due to their purportedly standard-setting technology which excited investors, led to artificially inflated prices during the Class Period. On August 8, 2011, Stereotaxis issues a press release announcing financial results well below expectations, as revenue had declined 22.7% from $15 million for the second quarter of 2010. Stereotaxis was progressively selling less units of its Niobe and Odyssey systems and the backlog of orders that the Company had boasted about was a mere illusion created by Stereotaxis. In addition, the Company announced that the Chief Financial Officer, Daniel J. Johnston was resigning and the full year guidance for 2011 was suspended. As a result of this news, shares of Stereotaxis declined more than 58% and closed on August 9, 2011 at $1.19 per share.
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of Stereotaxis’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please visit www.investment-losses.com or CALL TOLL FREE (888) 252-0048.