Invested in
Cutera, Inc.?
Attention Cutera shareholders: contact investor rights lawyers for a free evaluation of your potential claims for compensation today.
- Did you acquire shares of Cutera (NASDAQ: CUTR) in or before February 2021, and do you still hold your Cutera shares?
- Are you concerned about the recent performance of Cutera’s stock price?
- Are you concerned about the conduct of Cutera’s officers and directors related to alleged failure to disclose material weaknesses in the Company’s internal control over financial reporting and conflicts among Cutera’s senior leadership and board of directors?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
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Posted November 13, 2023
Cutera Class Action Investigation
Securities attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner have been investigating potential securities violations and corporate misconduct, as well as questionable business practices involving Cutera and have identified potential areas of concern for Cutera investors.
What Cutera Investors May Do
CUTR investors interested in an evaluation of their potential options to seek compensation and/or pursue claims related to their Cutera investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca, Scarlato, and Weidner have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct, and are currently evaluating potential claims on behalf of investors in Cutera, Inc.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned CUTR stock investors may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Has Cutera Been Accused of Misconduct?
Cutera, its former Chief Executive Officer and Board member David H. Mowry, former Chief Financial Officer, Rohan Seth, and former Chairman of Board and Executive Chairman, J. Daniel Plants, have been the subject of a securities class action lawsuit, filed in the United States District Court for the District of Northern District of California. The case is pending as of the date of this blog.
Cutera and the above-mentioned former members of its senior leadership are accused of misrepresentation and/or omissions, and failure to disclose material facts about Cutera’s business and operations.
Among others, Cutera allegedly overstated the sustainability of its revenue growth, failed to disclose significant conflicts among members of the senior leadership and Board, and failed to disclose several material weaknesses in the company’s internal control over financial reporting.
On April 7, 2023, after significant delays, Cutera reportedly issued its 2022 annual report reportedly revealing that, in contrast to what was represented previously to its investors, its disclosure controls and procedures were not effective due to several material weaknesses, in connection with: company’s information technology general controls that support the Company’s financial reporting process; inventory controls related to the completeness, existence, and cut-off of various inventories and controls related to the calculation of adjustments to inventory for items considered excessive and obsolete; the completeness and accuracy of expense for routine and non-routine equity based awards, the class action complaint alleges.
On May 9, 2023, Cutera reportedly filed its financial results for the first quarter of 2023, attributing the disappointing outcome to “execution challenges in the business,” the complaint further alleges.
What Happened to Cutera’s Stock Price?
According to the class action complaint, on January 9, 2023, Cutera released its preliminary financial results for the full-year 2022, in which it disclosed it has failed to meet its revenue guidance for 2022, in contrast to its representations to investors just two months earlier.
On this news, the price of Cutera’s common stock allegedly declined $9.41 per share, or more than 23%, from a close of $40.45 per share on January 6, 2023, to close at $31.04 per share on January 9, 2023.
A month later, on February 28, 2023, Cutera reportedly filed a Notification of Late Filing with the SEC, informing of the Company’s inability to timely file its annual financial report by the March 1, 2023 deadline due to needing additional time to complete “management’s assessment of the Company’s internal control over financial reporting,” among others. The notification further informed investors that Cutera reportedly identified “material weaknesses in its internal control over financial reporting related to . . . ineffective inventory count controls.”
Following the publication of this news, the price of CUTR stock allegedly declined $0.32 per share to close at $32.11 per share on March 1, 2023.
Further decline of CUTR price per share followed the announcement on March 16, 2023, when Cutera reportedly disclosed that it would not meet the extended deadline for filing its 2022 annual report revealing that the company had identified additional material weaknesses related to “ineffective inventory count controls and stock-based compensation.” On March 17, 2023, the CUTR stock price closed at $24.36 per share, according to the complaint.
A week later, Cutera disclosed in an 8-K Report that Nasdaq notified the Company that it was “not in compliance with Nasdaq Listing Rule 5250(c)(1)” for failing to timely file its 2022 annual financial report.
According to data from Yahoo Finance the CUTR stock price continued to decline since, and on November 10, 2023 closed at $1.68 per share, reportedly declining over 96% YTD.
Potential Compensation Claims
What Happened to Cutera’s Executives and Board Members?
According to the complaint, on April 7, 2023, Cutera allegedly disclosed in an 8-K Report that the Company’s Executive Chairman and Chairman of the Board, J. Daniel Plants, demanded a special meeting of the Company’s stockholders to vote on the removal of five members of the Company’s Board. A press release reportedly issued a few days later by J. Daniel Plants and David Mowry, motivated the demand for removal by stating, among others that “the Board has reached such a level of dysfunction that critical decisions are not being made and vital initiatives are unable to move forward.”
On April 12, 2023, the Cutera reportedly issued an 8-K Report disclosing the termination “with cause” of J. Daniel Plants as the Company’s Executive Chairman and Chairman of the Board and David Mowry as the Company’s Chief Executive Officer. Cutera further announced the withdrawal of its full-year 2023 outlook.
Additionally, on May 9, 2023, Cutera announced the resignation of its Chief Financial Officer, Rohan Seth who reportedly stayed in an advisory capacity until May 26, 2023.
Do Cutera Shareholders Have Claims for Compensation?
Investor rights attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner at Rosca Scarlato are investigating potential options and evaluating potential claims for compensation and/or other redress on behalf of Cutera, Inc. shareholders whose share value dropped following the alleged overstated sustainability of Cutera’s revenue growth, failure to disclose significant conflicts among members of the Company’s senior leadership and Board, and failure to disclose several material weaknesses. The Rosca Scarlato attorneys have decades of combined experience representing victims of corporate or financial misconduct.
If you are an Cutera investor who has acquired CUTR shares before February 2021, are concerned about the drop in the value of your investment, you may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.
All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, Cutera investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The Cutera Class Action Investigation page is not affiliated with Cutera. There has not been an adjudication on the merits of any allegations referenced in this blog post, as of the date of the posting.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Kathryn Weidner – kweidner@rscounsel.law
Recent Investigations
DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.
