A number of class action lawsuits were filed against
MAKO Surgical Corporation
) recently on behalf of investors who purchased its shares between
January 9 and May 7, this year. The lawsuits claim, among other
things, that MAKO misled the investors by not disclosing the
detrimental sales and utilization rates for its Robotic Arm
Interactive Orthopedic (RIO) Systems and MAKOplasty applications
during the aforementioned period.
As per the lawsuits, the defendant failed to reveal the actual
facts and misguided the claimants with the 2012 revenue outlook
provided during that period. According to the lawsuits, the outlook
lacked an analytical perspective and the company did not have any
reasonable basis to support it.
The lawsuits were filed in the United States District Court for
the Southern Disctrict of Florida. As per the lawsuits, the company
and some of its executives violated the federal law. The
complainants seek to recover the financial losses on behalf of the
class members in violation of Exchange Act. The legal
entities seek to recover the damages on behalf of the
The company's growth strategy focuses on increasing sales of RIO
Systems and MAKOplasty applications. In the light of higher costs
and declining sales of its RIO System and MAKOplasty applications
and no recent business developments, the imminent lawsuits are
bound to act as a headwind. However, considering the orthopedic
market overview, there is growth opportunity driven by demographic
trends and unsaturated domestic market.
MAKO develops and manufactures advanced robotic arm systems and
MAKOplasty applications. It competes with
MAKO currently retains a Zacks #3 Rank, which translates into a
short-term 'Hold' rating.
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