A Medical Device Daily

The law firm Coughlin Stoia Geller Rudman & Robbins reported a class action filed in the U.S. District Court for the District of Massachusetts on behalf of investors who bought common stock in Inverness Medical Innovations' (IMI; Waltham, Massachusetts) secondary public offering late last year.

In November IMI reported selling 13,634,302 shares at $61.49 a share, raising about $806.4 million in net proceeds. The total number of shares included 1.8 million shares sold to the underwriters to cover over-allotments. Certain selling stockholders of IMI also sold 165,698 shares in the offering (Medical Device Daily, Nov. 27, 2007).

According to the complaint, the registration statement "negligently failed to disclose the significant and severe integration issues that Inverness Medical was then experiencing and which were then impacting the company's continued operations."