A securities class action has been filed against CVRx, Inc. (CVRX) on behalf of persons and entities that purchased shares of CVRx’s common stock between July 25, 2023 through August 6, 2026. This case has been filed in the USDC – MN.
CVRx is a commercial-stage medical device company focused on developing, manufacturing, and commercializing minimally invasive neuromodulation solutions for patients with cardiovascular disease. CVRx manufactures, markets, and sells an implantable medical device called Barostim. Barostim is the first medical technology approved by the U.S. Food and Drug Administration (the “FDA”) that uses neuromodulation to “improve the symptoms” of patients with heart failure.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s financial results and business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (a) to induce sales growth, CVRx and/or its employees were engaged in illegal and unsustainable sales practices, including improperly marketing Barostim, offering or paying kickbacks, and providing false information to government health insurance programs in violation of the False Claims Act (“FCA”) and Anti-Kickback Statute (“AKS”); (b) CVRx’s revenues were in part the product of such unlawful conduct and thus unsustainable; (c) the illegal sales and marketing activities increased the risk of criminal and civil liability; and (d) as a result of the foregoing, Defendants’ public statements, including the Company’s reported revenue, purported growth drivers, compliance with the FCA and AKS, the effectiveness of its patient access and reimbursement strategy, and the effectiveness of CVRx’s internal controls over financial reporting were materially false and misleading at all relevant times. Additionally, throughout the Class Period, Defendants made materially false and misleading statements regarding the progress of the Company’s sales force realignment and the transformation of its commercial organization. Specifically, the Defendants made false and/or misleading statements and/or failed to disclose that: (a) contrary to Defendants’ assurances, sales force turnover had not been stabilized and productivity remained materially below expectations because the sales organization required additional training, support, and restructuring; (b) a significant portion of the sales force was inexperienced, required extended training and ramp time, and were not yet capable of generating the productivity to meet revenue projections; and (c) that as a result of the foregoing, Defendants’ public statements regarding the progress of the Company’s sales force realignment and the transformation of its commercial organization were materially false and misleading at all relevant times.