NEW YORK, NY -- (Marketwired) -- 05/24/13 -- Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that it has filed a securities class action lawsuit on behalf of its client Cambridge Retirement System ("Cambridge") against Invacare Corporation ("Invacare" or the "Company") (NYSE: IVC) and certain of its senior executives. The action, which is captioned Cambridge Retirement System v. Invacare Corporation, et al., No. 1:13-cv-01165 (N.D. Ohio), asserts claims under the Securities Exchange Act of 1934 ("Exchange Act") on behalf of investors in Invacare common stock during the period of July 22, 2010 through December 7, 2011 (the "Class Period").
The Complaint alleges that during the Class Period, Invacare and certain of its senior executives violated provisions of the Exchange Act by issuing false and misleading press releases, financial statements, filings with the Securities and Exchange Commission ("SEC"), and statements during investor conference calls. As alleged in the Complaint, Invacare and certain of its senior executives misled investors regarding Invacare's noncompliance with Food and Drug Administration ("FDA") guidelines and Current Good Manufacturing Practices ("CGMP"), and masked the fact that the Company suffered from widespread operational, quality, and regulatory deficiencies. Specifically, the Company concealed from investors that it received a series of warnings from the FDA -- known as Forms 483 -- which identified serious compliance violations at its two major United States-based manufacturing facilities.
After repeatedly failing to remedy these violations, the Company received a Warning Letter from the FDA, which the FDA released to the public on January 4, 2011. The Warning Letter identified a litany of CGMP violations and "recurring" consumer complaints concerning the safety of Invacare's medical beds, including incidents of death caused by entrapment and fire. In the Warning Letter, the FDA reprimanded Invacare for failing to take preventative action, document and evaluate serious complaints, and complete risk assessments to ensure the safety of its products. Disclosure of the Warning Letter caused Invacare stock to drop $1.38 per share, or 4.5 percent, to close at $29.29 per share.
Over the next several months, Defendants continued to downplay the scope and significance of Invacare's compliance issues, despite its receipt of two additional Forms 483 in August 2011, which were also concealed from investors. On December 8, 2011, however, Invacare shocked investors by issuing a press release announcing that the FDA intended to enter a consent decree, which would require the suspension of certain operations until the Company's manufacturing facilities became compliant with FDA regulations. News of Invacare's systemic quality and regulatory deficiencies, which could take many months to remediate and impact Invacare's revenue and growth, caused the Company stock to plummet $5.88 per share, or 28.6 percent, to close at $14.70 per share, wiping out over $180 million in market capitalization.
If you wish to serve as lead plaintiff for the Class, you must file a motion with the Court no later than 60 days from today. Accordingly, the deadline for filing a motion for appointment as lead plaintiff is July 23, 2013. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
Cambridge Retirement System is represented by BLB&G, a firm of over 100 attorneys with offices in New York, California, Louisiana, and Illinois. If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at avi@blbglaw.com.
Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.
CONTACT:
Avi Josefson
Bernstein Litowitz Berger & Grossmann LLP
1285 Avenue of Americas, 38th Floor
New York, NY 10019
(212) 554-1493
