SAN FRANCISCO, CA / ACCESSWIRE / December 20, 2020 / Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the investigations can be found at the links provided.
Penumbra, Inc. (NYSE:PEN) Investors Click Here.
SolarWinds Corporation (NYSE:SWI) Investors Click Here.
Penumbra, Inc. (PEN) Investigation:
Visit: www.hbsslaw.com/investor-fraud/PEN
Contact An Attorney Now: [email protected]
844-916-0895
The investigation centers on whether Penumbra misled investors about the company's flagship products for treating ischemic stroke.
On Nov. 9, 2020, Quintessential Capital Management ("QCM") published a scathing report, "Penumbra and its ‘killer catheter.'" QCM concluded: (1) "Penumbra's flagship ‘Jet 7' device is linked to 18 recorded deaths, 39 injuries: this might be only the ‘tip of the iceberg;'" (2) "[t]he device is unsafe and unmarketable: we believe an FDA class 1 recall highly likely; (3) "Penumbra may have been highly misleading in critical parts of its communication with doctors and investors;" and, (4) "[d]espite appearances, financial metrics are rapidly deteriorating, anticipating a possible sharp drop in sales."
Then, on Dec. 8, 2020, QCM published another report accusing Penumbra of having engaged in a multi-year scheme to fraudulently produce a substantial portion of scientific literature using a fake character to support its product marketing to healthcare providers. According to QCM, "[t]his fraudulent character appears to have been fabricated by management in a reckless attempt to hide its involvement with critical research produced with significant undisclosed conflicts of interest."
Later that day, Penumbra admitted its co-founder, Arani Bose, was the real author of published scientific literature supportive of the company's activities.
Most recently, on Dec. 15, 2020, Penumbra announced it is voluntarily recalling all configurations of its JET 7 Xtra Flex device because it may be susceptible to damage during use and subsequent patient injury or death.
These events have driven the price of Penumbra shares sharply lower.
"We're focused on, among other things, investor losses and whether Penumbra misled investors about the Jet 7 safety and by using a fictional author to support its business activities," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Penumbra investor or have information that may assist our investigation, click here to discuss your legal rights with Hagens Berman.
SolarWinds Corporation (SWI) Investigation:
Visit: www.hbsslaw.com/investor-fraud/SWI
Contact An Attorney Now: [email protected]
844-916-0895
The investigation centers on whether SolarWinds misled investors about the security of its IT monitoring products.
More specifically, on Dec. 13, 2020, Reuters reported hackers believed to be working for Russia have been monitoring email traffic at the U.S. Treasury and Commerce departments and the cyberspies are believed to have gotten in by surreptitiously tampering with updates released by SolarWinds, which serves government customers across the executive branch, the military, and the intelligence services.
On Dec. 14, 2020, SolarWinds announced it has evidence that the vulnerability was inserted in its Orion monitoring products and existed in updates released between March and June 2020.
On Dec. 15, 2020, Reuters reported that (1) security researcher Vinoth Kumar alerted SolarWinds last year that anyone could access the company's update server by using the password "solarwinds123," and (2) Kyle Hanslovan, co-founder of cybersecurity company Huntress, noticed that even days after SolarWinds knew their software was compromised the malicious updates were still available for download.
Days before these disclosures, two investors who reportedly control six of SolarWinds eleven-member board of directors sold approximately $285 million shares of company stock. The Washington Post reported "‘Of course the SEC is going to take a look at that,' said Jacob S. Frenkel, a former senior counsel in the SEC's Division of Enforcement. ‘Large trades in advance of a major announcement, then an announcement: That's a formula for an insider trading investigation.'"
"We're focused on who at SolarWinds knew about the security vulnerabilities and when," said Reed Kathrein, the Hagens Berman partner leading the investigation. "The huge insider sales just days before the news are mindboggling."
If you are a SolarWinds investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Penumbra and/or SolarWinds should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected] and/or [email protected].
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Contact:
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP