The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Establishment Labs Holdings Inc. (“Establishment Labs” or “the Company”) (NASDAQ: ESTA) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Establishment Labs is the subject of a report published by Hindenburg Research on October 19, 2022. The report, titled, “Establishment Labs: A Financially Stretched Silicone Safety Charade,” alleges that, “Despite claims of superior safety, we found that almost all key safety studies touted by the company have conflicts of interest, with many undisclosed or under-disclosed.” The report continues, “Establishment claims to have successfully piloted a ‘revolutionary’ technique to place implants through the armpit using local anesthesia (instead of general), claiming the technique will greatly expand its Total Addressable Market (TAM). This type of insertion has been reported since the 1970s and has been widely available for almost 20 years. It has failed to gain traction due to safety risks.” The report alleges, “Beyond undisclosed safety questions, we have also identified financial risks. Import/export records show that Establishment ships product to entities formerly owned by the CEO and his family, raising questions of conflicts of interest.” Based on this news, shares of Establishment Labs fell by more than 11% in intraday trading on the same day.
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The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
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The Schall Law Firm
Brian Schall, Esq.