HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages STAAR Surgical (STAA) Investors to Contact Its Attorneys Now, Firm Investigating Potential Improper Accounting and Securities Law Violations
San Francisco, California--(Newsfile Corp. - August 13, 2020) - Hagens Berman urges STAAR Surgical Company (NASDAQ: STAA) investors to contact the firm now. The firm is conducting a proprietary investigation into possible securities fraud.
The investigation centers on whether STAAR manipulated its financial statements, including overstating sales in China.
In past quarters, STAAR has emphasized its revenue, sales growth and market share in the Chinese market. STAAR attributed the company's success to its strategic partnerships, including with customer AIER, a China-based ophthalmology hospital group.
But on Aug. 11, 2020, research firm J Capital called STAAR's China success story into serious question by publishing a scathing report accusing the company of overstating its sales in China by at least one-third (or $21.6 mln), "meaning all of the company's $14 mln in 2019 profit is fake." The report - based on over 75 interviews with former employees, site visits to China and Switzerland, and extensive review of public documents - concludes STAAR reports fake sales revenues by overstating sales and then marking up actual marketing costs to hide "phantom" revenue. In particular, the report found that AIER's financial statements indicate that it bought only about half as many lenses as STAAR reports.
On this news, the price of STAAR shares sharply declined.
"We're focused on investor losses and whether STAAR cooked its books by inflating its China sales," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a STAAR investor, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding STAAR should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email STAA@hbsslaw.com.
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