Intuitive Surgical (NSDQ:ISRG) wasn’t able to dodge a proposed class action suit against it claiming it misrepresented the safety of its robotic surgical equipment and caused stock price to drop after a California federal judge kept the motion alive late last month.
US District Judge Edward Davila said that investors in the case had sufficiently plead the case, claiming the company had inflated its stock prices with misleading statements and sales practices.
Intuitive sought to dismiss the case upon the idea that the plaintiff’s statements were not “misleading as to a material fact,” according to court documents. Judge Davilla disagreed and, based on the decision from the Supreme Court case Omnicare v Laborer’s District Council Construction Industry Pension Fund, reaffirmed the earlier decision and kept the case alive.
“This Court has already ruled that the alleged statements of opinion in the Amended Complaint are sufficiently pled. The SAC is based on the very same alleged statements of opinions. Upon reexamination of the alleged statements with the benefit of the Omnicare decision, the Court reaffirms its prior determination that Plaintiffs’ allegations are sufficient at the pleading stage,” Judge Davilla wrote, according to court documents.
The court also gave Intuitive a small win as its motion for reconsideration of an earlier order regarding class certification was also denied, according to court documents.
Both sides in the legal battle were ordered to file a new case schedule no later than Oct. 15.
In August, Intuitive Surgical said that its board of directors approved a 3-for-1 split of the company’s common stock.