Procept BioRobotics Faces Class Action Over Inventory Disclosure Claims

The litigation, filed in the United States District Court for the Northern District of California, centers on claims that Procept BioRobotics failed to disclose an aggressive discount program that incentivized customers to stockpile handpieces. Plaintiffs argue these bulk purchases artificially inflated revenue metrics, masking a discrepancy between sales and actual clinical utilization. According to the complaint, customers accumulated more than 10,000 excess handpieces by the end of the class period.

The firm Levi & Korsinsky, which is representing the shareholders, alleges that the company’s public risk disclosures were too generic to warn investors of the financial imbalance. Shares of the NASDAQ-listed company fell from approximately $100.00 to under $25.00 following disclosures regarding field inventory issues and procedure data. Joseph E. Levi, lead attorney for the firm, stated that public filings failed to provide a fair view of demand before the market correction. The lawsuit seeks to hold the company and specific senior executives accountable for alleged omissions under the Securities Exchange Act of 1934.