3D Systems Investigated for Potential Violations of Federal and State Security Laws
The last couple of years have been nothing short of a rollercoaster ride for the Rock Hill, South Carolina-headquartered 3D printing company 3D Systems. After showing continuous loses throughout 2015, former CEO Avi Reichental decided to step down back in October, and was replaced by former HP Executive Vyomesh Joshi, who soon-after laid forth a well-formulated plan to bring financial stability to 3D Systems. The year continued on with even more upper management shake-ups, as former COO Mark Wright and CMO Cathy Lewis both resigned, while former Kodak Executive John McMullen joined ranks as the new 3D Systems CFO.
Despite the massive changes in upper management, 3D Systems’ 2016 financial reports seem to tell the same downtrodden story, at least for now. Their first quarter results revealed that increasing revenue losses and high operating costs were plaguing the company’s success, while the recently released second quarter financial report proved to be a bit more optimistic, but 3D printer sales continued to keep the company in the red. Suffice to say, it hasn’t been the easiest year for the 3D printing giant, and the latest bit of news regarding them seems to show more potential trouble on the horizon.
As Joshi attempts to drag 3D Systems back to prominence, yet another potential obstacle has risen in the way, this time in the form of an impending investigation and class action lawsuit. The Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of both federal and state securities laws by 3D Systems, as well as certain officers and board members. The court recently denied a motion to dismiss the class action lawsuit filed against 3D Systems, which could potentially leave them in more hot water with their already disgruntled shareholders.
According to Johnson & Weaver representatives, the class action alleges that the 3D Systems issued false and misleading statements regarding their ability to increase the capacity of its metal printing business, the actual demand for its consumer products, the value of multiple companies that they were acquiring, as well as their expected earnings. According to the class action suit, these allegedly false and misleading announcements about the 3D Systems’ prospects led its shares to be traded at artificially inflated prices.
Johnson & Weaver released a statement to shareholders potentially looking to take action against 3D Systems:
Long-term 3D Systems shareholders who wish to discuss their rights are encouraged to contact Johnson & Weaver’s Jim Baker by email (email@example.com) or by phone (619-814-4471). The civil suit is still in its early stages, and the extent of the wrongdoing remains to be seen, but the impending case leaves Joshi and 3D Systems with yet another dilemma to overcome. Still, not all is lost for the 3D Systems and their legacy, as their second quarter showed strength in their healthcare solutions and slight improvements in their overall numbers. Regardless of the civil suit’s outcome, 3D Systems has their work cut out for them, and they’re likely going to need the shareholders on their side. How do you see this turning out? Discuss further in the 3D Systems Lawsuit forum over at 3DPB.com. [Source: Johnson & Weaver]
“If you are a long term shareholder, continuously holding shares before November 2013, you may have standing to hold 3D Systems harmless from the damage the officers and directors caused by making them personally responsible. You may also be able to assist in reforming the Company’s corporate governance.”
You May Also Like
Interview with Scott Sevcik, VP Aerospace Stratasys, on 3D Printing for Aviation and Space
Out of all the possible industries that are deploying more 3D printers, aerospace is probably the most exciting. By reducing the weight of aircraft components, by iterating more, by integrating...
Researchers Use Autodesk Ember 3D Printer to Characterize 3D Printed Lenses
In the recently published ‘Characterization of 3D printed lenses and diffraction gratings made by DLP additive manufacturing,’ international researchers studied digital fabrication of optical parts using DLP 3D printing. Examining...
3D Printing in Dental Prosthetics: The Effects of Parameters on Fit & Gap
In the recently published ‘Effects of Printing Parameters on the Fit of Implant-Supported 3D Printing Resin Prosthetics,” authors Gang-Seok Park, Seong-Kyun Kim, Seong-Joo Heo, Jai-Young Koak, and Deog-Gyu Seo delve...
Longer3D Launches the Orange 10, Affordable SLA 3D Printer
3D printer manufacturer Longer3D has launched a highly competitive resin printer, the Longer Orange 10, an affordable SLA 3D printer with performance and specs that position it competitively in its...
View our broad assortment of in house and third party products.