NEW YORK, July 13, 2022 (GLOBE NEWSWIRE) -- Pomerantz LLP announces the pendency of a class action against Desktop Metal, Inc. ("Desktop Metal" or the "Company") DM and certain of its officers (the "Class Action"). The Class Action, filed in the United States District Court for the District of Massachusetts, and docketed under 22-cv-10297, alleges violations of the Securities Exchange Act of 1934 (the "Exchange Act") on behalf of investors in the securities of Desktop Metal.
The Class Action was filed on February 22, 2022. On March 18, 2022, the Class Action was ordered consolidated with three other securities fraud class actions on behalf of Desktop Metal investors. Then, on July 7, 2022, the Court vacated its earlier consolidation order, thereby permitting the Class Action to proceed as a separate action, and providing for new notice to be published, pursuant to the Private Securities Litigation Reform Act of 1995, advising investors who purchased Desktop Metal securities between January 15, 2021 and February 16, 2021, both dates inclusive (the "Class Period"), of the pendency of the Class Action.
If you are a shareholder who purchased or otherwise acquired Desktop Metal securities during the Class Period, you have until September 12, 2022 to ask the Court to appoint you as Lead Plaintiff in the Class Action. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Desktop Metal purports to offer additive manufacturing technologies focused on the production of end use parts. Its platforms include Production System, a manufacturing platform using the Company's proprietary Single Pass Jetting technology enabling production quantities of up to millions of parts per year; Shop System, an affordable turnkey binding jetting platform to bring metal 3D printing to machine and job shops; Studio System, an office-friendly metal 3D printing system; and Fiber, a desktop 3D printer using the Company's proprietary Micro Automated Fiber Placement.
On January 15, 2021, pre-market, Desktop Metal issued a press release announcing that it was going to acquire EnvisionTEC, Inc. and certain of its affiliates (collectively, "EnvisionTEC"), a provider of volume production photopolymer 3D printing solutions for end use parts.
Thereafter, on February 16, 2021, the Company completed its acquisition of EnvisionTEC.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that there were deficiencies in EnvisionTEC's manufacturing and product compliance practices and procedures; (2) that the foregoing deficiencies presented a material risk to the commercialization of EnvisionTEC's products; and (3) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On November 8, 2021, after the market closed, Desktop Metal disclosed that it was conducting an internal investigation into certain matters, including "manufacturing and product compliance practices and procedures with respect to a subset of its photopolymer equipment and materials at its EnvisionTec US LLC facility." The Company also stated that the Chief Executive Officer of EnvisionTec US LLC had resigned.
On this news, the Company's stock fell $0.39, or 4%, to close at $8.81 per share on November 9, 2021.
Then, on November 15, 2021, after the market closed, the Company stated that it would notify the U.S. Food and Drug Administration of "compliance issues with certain shipments of EnvisionTEC's Flexcera dental resins and its PCA4000 curing box."
On this news, the Company's stock fell $1.19, or 15%, to close at $6.83 per share on November 16, 2021, on unusually heavy trading volume.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
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