This case was last updated from U.S. District Courts on 07/19/2022 at 10:08:54 (UTC).

Plymouth County Retirement Association v. Outset Medical, Inc. et al

Case Summary

On July 8, 2022, Plymouth County Retirement Association (“Plaintiff”), individually and on behalf of all others similarly situated, represented by David Reuven Lev Kaplan of Saxena White P.A., filed a civil action against Outset Medical and some of its officers (collectively, “Defendants”), seeking declaratory relief and damages for alleged violations of the federal securities laws by the defendants. This case was filed in the U.S. District Court for the Northern District of California, with Judge Jacqueline Scott Corley presiding.

Plaintiff brought this action as a class action pursuant to Rule 23(a) and (b)(3) of the Federal Rules of Civil Procedure on behalf of a class, consisting of all persons and entities that purchased Outset Medical common stock between September 15, 2020, and June 13, 2022, inclusive, and who were damaged thereby (the “Class”).

In the complaint, the plaintiff stated, “Outset Medical is a medical technology company focused on kidney dialysis, the primary treatment for acute and chronic kidney failure. The Company’s flagship product is the Tablo Hemodialysis System (‘Tablo’).”

The plaintiff alleged, “Throughout the Class Period, Outset Medical touted that Tablo can ‘serve as a dialysis clinic on wheels’ that had been ‘cleared by the [U.S.] Food and Drug Administration [(the ‘FDA’)] for use in the hospital, clinic or home setting.’ While performing further regulatory studies during the Class Period, the Company assured investors that it was conducting the studies ‘in accordance with the FDA approved protocol,’ which required an appropriate demonstration of ‘real-world’ human testing given that the device would be used at home by non-professionals.” 

The plaintiff further alleged, “Seizing on positive prospects for sales of Tablo, the Company completed two secondary stock offerings—one in December 2020 and one in April 2021—raising more than $570 million in proceeds for the benefit of the Company and its private equity backers. Undisclosed to investors, and as Defendants have now admitted, Outset Medical ‘continuously’ made significant changes to Tablo for use in the home setting.”

The plaintiff then alleged, “Investors began to learn the truth after the markets closed on May 4, 2022, when the Company announced disappointing results for the first quarter of 2022, which analysts attributed, inter alia, to the untested nature of Tablo in the home setting.” 

The plaintiff additionally alleged, “Outset Medical then shocked investors after the markets closed on June 13, 2022, announcing that the FDA had forced the Company to hold all shipments of Tablo for use in the home until Tablo received proper regulatory clearance. In an astonishing admission made during an “FDA Review Call” held that day with analysts, Company Chief Executive Officer (‘CEO’) Leslie Trigg (‘Trigg’) acknowledged the ‘ship hold’ had already been in place for weeks before investors were provided this material information.”

The plaintiff also alleged, “The price of Outset Medical stock fell an additional 34%, from a closing price of $20.41 per share on June 13, 2022, to a closing price of $13.46 per share on June 14, 2022. Following the FDA Review Call, analysts openly questioned management’s credibility, reporting a difficulty ‘reconcil[ing] company commentary on the shipment hold.’ As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s common stock when the truth was disclosed.”

Plaintiff listed two claims for relief, including the alleged violations of Section 20(a) and 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder.

In its prayer for relief, the plaintiff requested a judgment for declaratory relief and an award for damages along with pre- and post-judgment interest.

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    3:22-CV-04016

  • Filing Date:

    07/08/2022

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

Jacqueline Scott Corley

 

Party Details

Plaintiff

Plymouth County Retirement Association

Defendants

OUTSET MEDICAL, Inc.

Leslie Trigg

Nabeel Ahmed

Rebecca Chambers

Attorney/Law Firm Details

Plaintiff Attorney

David Reuven Lev Kaplan

Attorney at Saxena White P.A.

12750 High Bluff Drive, Suite 475

San Diego, CA 92130

 

Court Documents

1 #1

Main Document

1 #1

Civil Cover Sheet

1 #2

Summons Outset Medical, Inc.

1 #3

Summons Nabeel Ahmed

1 #4

Summons Leslie Trigg

1 #5

Summons Rebecca Chambers

#2

(#2) Certificate of Interested Entities by Plymouth County Retirement Association (Kaplan, David) (Filed on 7/8/2022) (Entered: 07/08/2022)

#3

(#3) CERTIFICATE of Counsel by David Reuven Lev Kaplan on behalf of Plymouth County Retirement Association (Kaplan, David) (Filed on 7/8/2022) (Entered: 07/08/2022)

#4

(#4) CERTIFICATE of Counsel Wolfram Worms by David Reuven Lev Kaplan on behalf of Plymouth County Retirement Association (Kaplan, David) (Filed on 7/8/2022) (Entered: 07/08/2022)

6 #6

Main Document

6 #1

Notice of Eligibility for Video Recording

 

Docket Entries

  • 07/11/2022
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  • Docket#Electronic filing error.INCORRECT EVENT USED (USE PROPOSED SUMMONS EVENT). ONLY ONE SUMMONS TO BE ISSUED PER CASE, USE AN ATTACHMENT TO SUMMONS IF NEEDED TO LIST ADDITIONAL DEFEND ANTS INFORMATION [err201].This filing will not be processed by the clerks office.Please re-file in its entirety. Re: #1 Summons, filed by Plymouth County Retirement Association (far, COURT STAFF) (Filed on 7/11/2022) (Entered: 07/11/2022)

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  • 07/11/2022
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  • Docket(#6) INITIAL CASE MANAGEMENT SCHEDULING ORDER SEC CLASS ACTION Notice: The assigned judge participates in the Cameras in the Courtroom Pilot Project. See General Order No. 65 and http://cand.uscourts.gov/cameras. SEC Class Action Notice due by 7/29/2022. Case Management Statement due by 9/29/2022. Initial Case Management Conference set for 10/6/2022 01:30 PM in San Francisco, Courtroom 08, 19th Floor. (Attachments: #1 Notice of Eligibility for Video Recording)(far, COURT STAFF) (Filed on 7/11/2022) (Entered: 07/11/2022)

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  • 07/08/2022
  • Docket(#5) Case assigned to Judge Jacqueline Scott Corley. Counsel for plaintiff or the removing party is responsible for serving the Complaint or Notice of Removal, Summons and the assigned judge's standing orders and all other new case documents upon the opposing parties. For information, visit E-Filing A New Civil Case at http://cand.uscourts.gov/ecf/caseopening.Standing orders can be downloaded from the court's web page at www.cand.uscourts.gov/judges. Upon receipt, the summons will be issued and returned electronically. A scheduling order will be sent by Notice of Electronic Filing (NEF) within two business days. (as, COURT STAFF) (Filed on 7/8/2022) (Entered: 07/08/2022)

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  • 07/08/2022
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  • Docket(#4) CERTIFICATE of Counsel Wolfram Worms by David Reuven Lev Kaplan on behalf of Plymouth County Retirement Association (Kaplan, David) (Filed on 7/8/2022) (Entered: 07/08/2022)

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  • 07/08/2022
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  • Docket(#3) CERTIFICATE of Counsel by David Reuven Lev Kaplan on behalf of Plymouth County Retirement Association (Kaplan, David) (Filed on 7/8/2022) (Entered: 07/08/2022)

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  • 07/08/2022
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  • Docket(#2) Certificate of Interested Entities by Plymouth County Retirement Association (Kaplan, David) (Filed on 7/8/2022) (Entered: 07/08/2022)

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  • 07/08/2022
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  • Docket(#1) COMPLAINT against All Defendants ( Filing fee $ 402, receipt number ACANDC-17335087.). Filed byPlymouth County Retirement Association. (Attachments: #1 Civil Cover Sheet, #2 Summons Outset Medical, Inc., #3 Summons Nabeel Ahmed, #4 Summons Leslie Trigg, #5 Summons Rebecca Chambers)(Kaplan, David) (Filed on 7/8/2022) (Entered: 07/08/2022)

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