Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Desktop Metal, Inc. (DM)

Wednesday, 19. January 2022 16:45

NEW YORK, Jan. 19, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Desktop Metal, Inc. (“Desktop Metal”) (NYSE: DM) in the United States District Court for the District of Massachusetts on behalf of investors who purchased Desktop’s common stock between March 15, 2021 and November 15, 2021, both dates inclusive (the “Class Period”).

The Complaint alleges that Defendants failed to disclose to investors that: (a) there were deficiencies in EnvisionTEC’s manufacturing and product compliance practices and procedures; (b) the foregoing deficiencies presented a material risk to the commercialization of EnvisionTEC’s products; and (c) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On November 8, 2021, after the market closed, the Company disclosed that it was conducting an internal investigation into certain matters, including “manufacturing and product compliance practices and procedures with respect to a subset of its photopolymer equipment and materials at its EnvisionTec US LLC facility.” The Company also stated that the Chief Executive Officer of EnvisionTec US LLC had resigned. On this news, the Company’s stock dropped $0.39, or 4%, to close at $8.81 per share on November 9, 2021.

Then, on November 15, 2021, after the market closed, the Company stated that it would notify the U.S. Food and Drug Administration (“FDA”) of “compliance issues with certain shipments of EnvisionTEC’s Flexcera dental resins and its PCA4000 curing box.” On this news, the Company’s stock fell $1.19, or 15%, to close at $6.83 per share on November 16, 2021, on unusually heavy trading volume.

Investors who purchased or otherwise acquired shares of Desktop should contact the Firm prior to the February 22, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.


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