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3D Systems Investigated for Potential Violations of Federal and State Security Laws

by • August 4, 2016 • No Comments

3DSystems185The last couple of years have been nothing short of a rollercoaster ride for the Rock Hill, South Carolina-headquartered 3D printing company 3D Systems. After revealing continuous loses throughout 2015, former CEO Avi Reichental decided to step down back in October, and was replaced by former HP Executive Vyomesh Joshi, who soon-after laid forth a well-formulated plan to bring financial sttalent to 3D Systems. The year continued on with actually additional upper management shake-ups, as former COO Mark Wright and CMO Cathy Lewis both resigned, while former Kodak Executive John McMullen joined ranks as the new 3D Systems CFO.

Despite the huge changes in upper management, 3D Systems’ 2016 financial reports seem to tell the same downtrodden story, at very least for now. Their initially quarter results announced that increasing ractuallyue losses and high operating costs were plaguing the company’s good results, while the not long ago released 2nd quarter financial report proved to be a bit additional optimistic, but 3D printing device sales continued to store the company in the red. Suffice to say, it hasn’t been the easiest year for the 3D printing giant, and the latest bit of news regarding them appears to show additional future trouble on the horizon.

Johnson & Weaver LLP (PRNewsFoto/Johnson & Weaver LLP)

As Joshi attempts to drag 3D Systems back to prominence, yet another future obstacle has risen in the way, this time in the form of an impending investigation and class action lawsuit. The Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating future violations of both federal and say securities laws by 3D Systems, as well as sure officers and board participants. The court not long ago denied a motion to dismiss the class action lawsuit filed against 3D Systems, that may futurely leave them in additional hot water with their may already disgruntled shareholders.

According to Johnson & Weaver representatives, the class action alleges that the 3D Systems issued false and misleading sayments regarding their talent to increase the ability of its metal printing business, the actual demand for its consumer products, the value of multiple companies that they were getting
, as well as their expected earnings. According to the class action suit, these allegedly false and misleading announcements of the 3D Systems’ prospects led its shares to be traded at artificially inflated prices.

Johnson & Weaver released a sayment to shareholders futurely looking to take action against 3D Systems:

“If you are a long term shareholder, continuously holding shares preceding November 2013, you may have standing to hold 3D Systems harmless of the injure the officers and directors caused by building them personally responsible. You may in addition be able-bodied to help in reforming the Company’s corporate governance.”

(Photo: Thinkstock)

[Photo: Thinkstock]

Long-term 3D Systems shareholders who wish to discuss their rights are encouraged to contact Johnson & Weaver’s Jim Baker by email (jimb@johnsonandweaver.com) or by phone (619-814-4471). The civil suit is yet in its early stages, and the extent of the wrongdoing remains to be seen, but the impending case leaves Joshi and 3D Systems with yet another dilemma to overcome. But, not all is lost for the 3D Systems and their legacy, as their 2nd quarter showed durablity in their healthcare solutions and slight improvements in their overall numbers. Regardless of the civil suit’s result, 3D Systems has their work cut out for them, and they’re most likely going to require the shareholders on their side. How do you see this turning out? Discuss additional in the 3D Systems Lawsuit forum over at 3DPB.com. [Source: Johnson & Weaver]