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id: 740, Created by Stan Vick Chase, Scout
Cutera, Inc. (CUTR) Misconduct Case
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- Cutera reported disappointing financial results and announced several resignations.
- $CUTR declined 30%, damaging investors.
- Investors suspect Cutera & its Leaders of misleading and failing to disclose true material facts about the Company.
On May 9, 2023, Cutera reported disappointing financial results for Q1 2023 that were “below expectations due to execution challenges in the business” and announced that Rohan Seth had resigned as the company’s CFO.
On this news, $CUTR declined 30% over two trading sessions, seriously damaging investors.
- On April 12, 2023, Cutera revealed that it had terminated Plants as the company’s Executive Chairman and Chairman of the Board and Mowry as CEO, appointing current Board members Janet D. Widmann and Sheila A. Hopkins as Independent Chair of the Board and Interim Chief Executive Officer, respectively. In connection with this announcement, Cutera also formally withdrew its full‑year 2023 financial guidance. On this news, the price of Cutera common stock declined more than 28%.
- On April 10, 2023, Plants and David H. Mowry, the company’s CEO, issued statements in support of their separate demands calling for the Board to remove five of its directors. In connection with their demands, Plants, and Mowry cited concerns that the Board had not made progress on a succession plan for the role of CEO, and Mowry stated that “the approach the Entrenched Directors have taken to these matters has been detrimental to the business and served no purpose other than to position certain Directors closer to the CEO title that they seem to covet for themselves.”
- On April 7, 2023, Cutera disclosed 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 Board.
- On March 24, 2023, Cutera disclosed 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. On this news, the price of Cutera common stock declined 3.4%.
- On March 16, 2023, Cutera announced that it would not meet the extended deadline for filing its 2022 annual report, and would endeavor to file its 2022 annual report “as soon as practicable.” The company also revealed that, in addition to the material weaknesses previously identified, Cutera had identified material weaknesses related to stock-based compensation. On this news, the price of Cutera common stock declined 12.5%.
- On February 28, 2023, Cutera filed a Notification of Late Filing with the SEC, reporting that the company would not be able to timely file its annual financial report on Form 10-K by the March 1, 2023 deadline. Cutera further disclosed that it “had identified and expected to disclose in the Form 10-K material weaknesses in its internal control over financial reporting related to . . . ineffective inventory count controls.” On this news, the price of Cutera common stock declined 1%.
Taking all facts into account, Investors have reasons to suspect Cutera & its Leaders of misleading and failing to disclose true material facts about the Company. Specifically, they overstated the sustainability of Cutera’s revenue growth, failed to disclose significant conflicts among members of the company’s senior leadership and Board, and failed to disclose several material weaknesses in Cutera’s internal control over financial reporting. As a result of Defendant’s wrongful acts and omissions, and the significant decline in the market value of the company’s common stock, Cutera’s investors have suffered significant damages.
Failure to Disclose,
Shock Event Date
09 May 2023
24 May 2023
Lead Plaintiff Deadline
24 July 2023