National securities law firm Gilman Law LLP announces that a ZELTIQ Aesthetics class action securities fraud lawsuit has been commenced against ZELTIQ Aesthetics, Inc. (“ZELTIQ”) (NASDAQ: ZLTQ) and certain of its officers and directors in Superior Court of the State of California for the County of Alameda.
The ZELTIQ Aesthetics securities fraud lawsuit alleges that ZELTIQ violated Federal securities laws by issuing false and misleading information or omissions in the Company’s Registration Statement and Prospectus, issued in connection with the Offering that was completed on October 24, 2011.
If you purchased or otherwise acquired shares of ZELTIQ pursuant to and/or traceable to the Company’s initial public offer (the “IPO” or “Offering”) in October 2011, you should contact Gilman Law LLP to discuss your rights as to recovery of your losses or for additional information. For a free evaluation of your case, please complete the online form or CALL TOLL FREE (888) 252-0048.
Based in Pleasanton, California, ZELTIQ is a medical technology company that engages in developing and commercializing non-invasive products for the selective reduction of fat. ZELTIQ went public in October 2011, which raised $89.3 million, at $13.00 per share. The complaint alleges that ZELTIQ’s Registration Statement failed to disclose, among other things, that the Company was going to initiate a transition to a direct sales force in certain key international markets in the 2011 fiscal fourth quarter, which would negatively impact the Company’s near term financial performance. The suit further alleges that the Company’s business during the fiscal fourth quarter was subject to seasonal trends that negatively impacted its financial performance.
Once ZELTIQ issued a press release on March 6, 2012 announcing fourth quarter 2011 sales and profits well below analyst estimates, shares of ZELTIQ declined $3.75 per share, or 33.75%, to close at $7.36 per share, on unusually heavy trading volume. The closing price represented a cumulative loss of $5.64, or 43.38%, of the value of Company’s shares at the IPO price of $13.00 per share.