Stockholders v Staar Surgical Company
Staar Surgical Accused of Withholding Problems with Contact Lens Product
A class action has been filed against Staar Surgical Company, a California based developer, manufacturer and global distributor of medical devices for use in cataract, refractive and glaucoma surgery, (NASDAQ: STAA) and certain of its officers and directors by stockholders who purchased the company's common stock between April 3, 2003 and January 6, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities.
Specifically, the complaint alleges that Staar failed to disclose significant problems with the manufacture of their premier product, the ICL (implantable contact lenses) and injuries resulting from the use of the product. On January 6, 2004, the U.S. Food & Drug Administration (FDA) posted a warning letter to the Company, dated December 22, 2003, concerning serious violations of manufacturing standards and inadequate reporting relating to the ICL.
The news caused the price of Staar's common stock to fall to $9.22 per share, nearly an eighteen (18) percent drop from the previous day. The stockholders seek to recover compensatory damages for the loss of value of their stock.
