Establishment Labs Holdings Inc. (ESTA)
Investigation
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Establishment Labs Holdings Inc. (“Establishment Labs” or “the Company”) (NASDAQ: ESTA). Investors who purchased Establishment Labs securities are encouraged to obtain additional information and assist the investigation.
The investigation concerns whether Establishment Labs violated federal securities laws.
On October 19, 2022, Hindenburg Research published a report titled, “Establishment Labs: A Financially Stretched Silicone Safety Charade.” The report alleged that, “Despite claims of superior safety, we found that almost all key safety studies touted by the company have conflicts of interest, with many undisclosed or under-disclosed.” The report continues, “Establishment claims to have successfully piloted a ‘revolutionary’ technique to place implants through the armpit using local anesthesia (instead of general), claiming the technique will greatly expand its Total Addressable Market (TAM). This type of insertion has been reported since the 1970s and has been widely available for almost 20 years. It has failed to gain traction due to safety risks.” The report alleges, “Beyond undisclosed safety questions, we have also identified financial risks. Import/export records show that Establishment ships product to entities formerly owned by the CEO and his family, raising questions of conflicts of interest.” Following this news, Establishment Labs shares dropped over 11% during intraday trading on that same day.
If you are aware of any facts relating to this investigation or purchased Establishment Labs shares, you can assist this investigation. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
