NEW YORK, June 27, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Restoration Robotics, Inc. (“Restoration Robotics” or the “Company”) (Nasdaq: HAIR ) in the United States District Court for the Northern District of California on behalf of a class consisting of investors who purchased or otherwise acquired Restoration Robotics securities pursuant to the Company’s October 2017 initial public offering (“IPO”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Act of 1933.
The Complaint alleges that on October 13, 2017, Restoration Robotics held its IPO, offering 3,575,000 shares priced at $7.00 per share, raising $25 million in gross proceeds. Restoration Robotics told investors that the proceeds would fund the Company’s operations for a full year after the IPO and said that the Company’s robotic implantation functionality was ready to go. The truth would be revealed on March 20, 2018, when the Company disclosed it “plan[ned] to complete the necessary design and engineering work to launch the implantation functionality by year-end.” Restoration Robotics further represented that the Company was well-positioned to grow its domestic business through increased sales, when in reality Restoration Robotics was not equipped with a sufficient salesforce to effectively grow the business in the U.S. By the end of the first quarter of 2018, the company admitted that it did “not have sufficient capital to fund its planned operations.” Restoration Robotics’ stock currently trades at only $3.26 per share—less than half the company’s IPO price.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the August 21, 2018 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.
