Suit Filed Against Zimmer
July 28, 2016 at 4:25 p.m.
By Staff Report-
Izard Nobel LLP has filed a case in the U.S. District Court for the Southern District of Indiana seeking class-action status to represent people who purchased stock of Zimmer Holdings Inc. between Jan. 29 and July 22.
Izard Nobel LLP is known for prosecuting claims of security fraud.[[In-content Ad]]A class-action lawsuit is a civil case brought by one or more people on the behalf of themselves and others who are in similar situations. A securities claim usually is issued when a company issues a false or allegedly false press release that causes stock prices to rise. Once the correct information comes out, the stock price falls back to a much lower rate. In the situation, a class action can be brought on behalf of all the stockholders who purchased shares after the company issued deceptive news and before the truth came out.
Most class-action suits have hundreds, thousands or millions of people with similar claims. When the case is classified as a class action, all those people can be heard and represented in one trial.
While Izard Noble LLP has not filed a case against Zimmer Holdings, it has prepared a complaint against the company that may be filed in the future.
The complaint the firm has prepared claims Zimmer misrepresented itself when the company did not disclose information about problems with its Durom Acetabular Component that is used in total hip replacement procedures. The company also reportedly did not disclose flaws in quality systems at its Dover, Ohio, location.
Because of Zimmer's failure to disclose that information, the suit claims, the company's stock was sold at artificially high prices, the suit claims. According to the lawsuit, once the information became public, the price of the company's stock fell significantly. After the information came out, Zimmer stock fell from $70.88 to $66.01 in one day.
According to Brad Bishop, public affairs officer at Zimmer, the company "does not comment on litigation."
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Izard Nobel LLP has filed a case in the U.S. District Court for the Southern District of Indiana seeking class-action status to represent people who purchased stock of Zimmer Holdings Inc. between Jan. 29 and July 22.
Izard Nobel LLP is known for prosecuting claims of security fraud.[[In-content Ad]]A class-action lawsuit is a civil case brought by one or more people on the behalf of themselves and others who are in similar situations. A securities claim usually is issued when a company issues a false or allegedly false press release that causes stock prices to rise. Once the correct information comes out, the stock price falls back to a much lower rate. In the situation, a class action can be brought on behalf of all the stockholders who purchased shares after the company issued deceptive news and before the truth came out.
Most class-action suits have hundreds, thousands or millions of people with similar claims. When the case is classified as a class action, all those people can be heard and represented in one trial.
While Izard Noble LLP has not filed a case against Zimmer Holdings, it has prepared a complaint against the company that may be filed in the future.
The complaint the firm has prepared claims Zimmer misrepresented itself when the company did not disclose information about problems with its Durom Acetabular Component that is used in total hip replacement procedures. The company also reportedly did not disclose flaws in quality systems at its Dover, Ohio, location.
Because of Zimmer's failure to disclose that information, the suit claims, the company's stock was sold at artificially high prices, the suit claims. According to the lawsuit, once the information became public, the price of the company's stock fell significantly. After the information came out, Zimmer stock fell from $70.88 to $66.01 in one day.
According to Brad Bishop, public affairs officer at Zimmer, the company "does not comment on litigation."
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