SAN DIEGO and ROCK HILL, S.C., July
6, 2015 /PRNewswire/ -- Shareholder rights law firm
Robbins Arroyo LLP announces that a federal securities fraud class
action complaint was filed in the U.S. District Court for the
District of South Carolina Rock Hill Division. The complaint
alleges that officers and directors of 3D Systems
Corporation (NYSE: DDD) violated the Securities Exchange Act
of 1934 between October 29, 2013 and
October 22, 2014, by making
materially false and misleading statements about 3D's business
prospects. 3D Systems is an international 3D printing company
that provides 3D printers, print materials, custom-parts, and
software.
View this information on the law firm's Shareholder Rights
Blog:
www.robbinsarroyo.com/shareholders-rights-blog/3d-systems-corporation
3D Systems Corporation Misrepresents its Financial
Condition
According to the complaint, on October
29, 2013, 3D Systems announced it was tripling its
manufacturing capacity over the next 12 months and accelerating the
development of additional direct metal 3D printer models. It
also touted the strategic value of the company's recent
acquisitions and said it planned to quadruple direct metal printing
sales over the next 12 to 18 months. Following the
announcement, 3D stock soared, reaching $80 per share on November
18, 2013. However, the complaint alleges that the
company had no basis to represent that it would be able to
accomplish its capacity and sales goals. And, many of the
company's acquisitions were not strategically acquired and would
require significant additional investment to integrate into 3D.
The complaint further alleges that 3D's wrongful acts and
omissions caused an unrealistically positive assessment of the
company's financial condition, causing its shares to be traded at
artificially inflated prices. 3D's inflated share price
allowed company officials to receive enormous profits from the sale
of 3D stock. For example, throughout the class period company
executives sold over $11 million
worth of their shares, and on May 29,
2014, 3D offered 5,950,000 shares of its stock, netting
approximately $300 million. On
October 22, 2014, 3D revealed
disappointing preliminary third quarter results and guided lower
full year revenue and earnings. The company blamed its poor
results on capacity constraints for its direct metal
printers. On this news, 3D shares plummeted over 15% on high
volume.
3D Systems Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, DDonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
Logo -
http://photos.prnewswire.com/prnh/20130103/MM36754LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/robbins-arroyo-llp-3d-systems-corporation-ddd-misled-shareholders-according-to-a-recently-filed-class-action-300109301.html
SOURCE Robbins Arroyo LLP