Intuitive Surgical faces shareholder class action lawsuit

June 3, 2013 by Arezu Sarvestani

Intuitive Surgical shareholders file a class action lawsuit accusing the company of hiding negative information while reaping hundreds of millions through "fraud-inflated" stock.

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Shareholders of Intuitive Surgical (NSDQ:ISRG) late last month filed a class action lawsuit accusing the robot-assisted surgery giant and its executives of artificially inflating the company's stock price with misleading statements and "disreputable" sales practices.

The lawsuit claims that Intuitive and a 9 of it executives concealed safety and efficacy problems with the da Vinci surgical system while posting "quarter after quarter of record financial results," a scheme that the plaintiffs say allowed company leadership to cash in on their personally held stock at "fraud-inflated" prices worth hundreds of millions.

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"The da Vinci robot is the subject of a growing number of personal injury lawsuits, while at the same time, regulatory scrutiny of the device has also increased," according to the law firm of Bernstein Liebhard LLP, which is not involved in the shareholder suit but is offering services to patients who believe they suffered injuries as a result of treatment with the da Vinci system. "It's not surprising that these developments have sparked shareholder concerns."