NEW YORK, March 14, 2019 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Inogen, Inc. ("Inogen" or the "Company") (NASDAQ: INGN). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.
The investigation concerns whether Inogen and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On November 6, 2018, post-market, Inogen released its financial and operating results for the third quarter of 2018. While quarterly financial results were in line with expectations, the Company revealed that growth in domestic business-to-business sales to home medical equipment providers had slowed precipitously to 32% from 56% in the second quarter of 2018, and reduced its guidance for fiscal 2018 adjusted EBITDA to $60-$62 million from $65-$69 million.
Following these disclosures, Inogen's stock price fell $37.44 per share, or more than 19%, to close at $155.86 per share on November 7, 2018.
Then, on February 8, 2019, and February 12, 2019, stock analysts published detailed investigative reports which challenged, among other things, the size of Inogen's actual total addressable market ("TAM"), the basis for its prior TAM claims, and the source of its Class Period sales growth. Following these reports, Inogen's stock price fell $4.15 per share, or 2.92%, to close at $138.05 per share on February 12, 2019. Finally, on February 26, 2019, post-market, Inogen issued a press release announcing its fourth quarter and fiscal year 2018 financial and operating results and held a conference call with investors and analysts to discuss its business metrics and financial prospects. During the call, the Company's Chief Executive Officer backtracked on Inogen's prior TAM estimate of 2.5 to 3 million patients, and blamed Inogen's poor "domestic business-to-business sales" on "order activity [that] slow[ed] from one national home care provider in the fourth quarter of 2018." Inogen also reported that its non-GAAP EBITDA for the quarter was $10.5 million, 9.5% lower than in fiscal 2017, and significantly reduced its previously provided 2019 net income guidance, citing in large part the decline in its own stock price.
On this news, Inogen's stock price fell $33.77 per share, or more than 24%, to close at $106.28 per share on February 27, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
