Law firm sues Inogen for misleading statements

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Thursday, March 7, 2019

SAN DIEGO – Robbins Geller Rudman & Dowd has filed a class action lawsuit against Inogen on behalf of purchasers of the company’s stock between Nov. 8, 2017, and Feb. 26, 2019.

The lawsuit charges Inogen and certain of its officers with making false and misleading statements and/or failing to disclose adverse information regarding the company’s business metrics and financial prospects during the period, in violation of the Securities Exchange Act of 1934.

Specifically, the lawsuit charges that:

  • Inogen failed to disclose it had overstated the true size of the total addressable market for its POCs and misstated the basis for its calculation of the market;
  • It falsely attributed its sale growth to the strong sales acumen of its salesforce, when in reality it was due, in large part, to sales tactics designed to deceive its elderly customer base; and
  • It inflated the growth in domestic business-to-business sales to HME providers, eroding direct-to-consumer sales.

As a result, the lawsuit charges that the price of Inogen common stock was artificially inflated to more than $282 per share during the period, only to fall to $106.28 per share on Feb. 27.

The plaintiff seeks to recover damages on behalf of all purchasers of Inogen common stock during the period.

The lawsuit, Fabbri v. Inogen, Inc., et al., No. 19-cv-1643, was filed in the Central District of California.