Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against TransEnterix, Inc.

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Jun 02, 2016, 05:29 ET

SAN DIEGO, June 2, 2016 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/transenterix/) today announced that a class action has been commenced on behalf of purchasers of TransEnterix, Inc. ("TransEnterix") (NYSE MKT:TRXC) common stock during the period between February 10, 2016 and May 10, 2016, inclusive (the "Class Period"). This action was filed in the Eastern District of North Carolina and is captioned Bankley v. TransEnterix, Inc., et al., No. 16-cv-00313-BR.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Robert Robbins of Robbins Geller at 800/449-4900 or 561/750-3000, or via e-mail at [email protected]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/transenterix/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges TransEnterix and certain of its officers and directors with violations of the Securities Exchange Act of 1934. TransEnterix is a medical device company that seeks to use flexible instruments and robotics to improve the outcome of minimally invasive surgery, including through its SurgiBot System ("SurgiBot"), a single-port, robotically enhanced laparoscopic surgical platform. On June 1, 2015, the Company announced that it had submitted its 510(k) application to the United States Food and Drug Administration ("FDA") seeking "substantial equivalence" approval that would enable TransEnterix to begin marketing and selling the SurgiBot in the United States.

The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose adverse information regarding key aspects of the Company's business. Specifically, the complaint alleges defendants failed to disclose deficiencies within the Company's 510(k) submission regarding the SurgiBot that undermined the likelihood that the SurgiBot would receive FDA clearance, which would leave the Company unable to commercialize the SurgiBot in 2016 and would impair the Company's ability to obtain approval for and commercialize its other robotic surgery platform in the United States. As a result of these false statements and/or omissions, TransEnterix common stock traded at artificially inflated prices during the Class Period, reaching as high as $5.69 per share.

On April 20, 2016, the Company issued a press release announcing its receipt of a response from the FDA on its SurgiBot 510(k) submission, which stated that "the FDA has determined that the SurgiBot™ System does not meet the criteria for substantial equivalence based upon the data and information submitted by TransEnterix in its 510(k) submission." On this news, the price of TransEnterix stock fell $2.47 per share, or more than 50%, to close at $2.27 per share on April 21, 2016.

Then on May 20, 2016, the Company issued a press release stating that it "expect[ed] to have further discussion with the FDA, but currently believes that a new 510(k) submission would be required to obtain clearance," that it was reprioritizing its near-term regulatory efforts to focus on another submission, and that, as a result, it "ha[d] taken actions to reduce headcount and investment related to the SurgiBot." On this news, the price of TransEnterix common stock fell another 10% to close at $1.84 per share on May 11, 2016.

Plaintiff seeks to recover damages on behalf of all purchasers of TransEnterix common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.

Robbins Geller is widely recognized as one of the leading law firms advising U.S. and international institutional investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history and was ranked first in both the total amount and number of shareholder class action recoveries in ISS's SCAS Top 50 Report for the last two years. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm's clients. Robbins Geller not only secures recoveries for defrauded investors, it also strives to implement corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com/cases/transenterix/ for more information.

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SOURCE Robbins Geller Rudman & Dowd LLP