NARI - Inari Medical Faces Lengthy DOJ Probe and Investor Suit Over Potential Kickbacks to Doctors- Hagens Berman
SAN FRANCISCO, June 03, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Inari Medical, Inc. (NASDAQ: NARI) investors who suffered substantial losses to submit your losses now .
Class Period: Feb. 24, 2022 – Feb. 28, 2024
Lead Plaintiff Deadline: July 12, 2024
Visit: www.hbsslaw.com/investor-fraud/nari
Contact the Firm Now: NARI@hbsslaw.com
844-916-0895
Inari Medical, Inc. (NARI) Class Action:
Inari Medical, a medical device manufacturer, is bracing for a protracted investigation by the Department of Justice (DOJ) centering on allegations of illegal kickbacks to healthcare professionals. The inquiry, disclosed in late February, has cast a shadow over the company, sending its stock price plummeting and prompting a class-action lawsuit from investors.
On Feb. 29, 2024, Inari revealed it had received a Civil Investigative Demand (CID) from the DOJ’s Civil Division in Dec. 2023. The CID pertains to an investigation under the Anti-Kickback Statute and the False Claims Act, focusing on payments the company made to healthcare professionals for meals and consulting services.
This news sent the price of Inari shares spiraling over $12 (about 21%) lower on Feb. 29, 2024.
While Inari maintains it has not observed any commercial repercussions from the investigation, CEO Drew Hykes acknowledged during a recent earnings call that resolving the matter could take “ quarters and quarters, if not years .” This extended timeline adds to the uncertainty surrounding the company, further exacerbated by a recently filed investor lawsuit.
The lawsuit, brought on behalf of investors who purchased Inari stock between February 24, 2022, and February 28, 2024, alleges the company misled investors by failing to disclose the potential illegality of its doctor payment practices. The suit contends that Inari’s positive revenue might be attributable to these practices and that increased expenses stemmed from illegally incentivizing medical professionals to use their products.
Inari’s situation reflects the heightened scrutiny on financial ties between medical device companies and healthcare providers. The DOJ’s investigation, coupled with the investor lawsuit, could have significant consequences for Inari's business practices and financial health in the coming years.
“We are investigating whether Inari may have misled investors by mispresenting and concealing the true driver of its revenue growth,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Inari and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Inari case and our investigation, read more »
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com . Follow the firm for updates and news at @ClassActionLaw .
Contact:
Reed Kathrein, 844-916-0895