by • July 11, 2016 • No Comments
A class action lawsuit over the MakerBot debacle has been dismissed. The case centred on the fifth generation printing device and now a Minnesota court has decided that the company did not wilfully mislead customers and investors after all.
There were obvious issues with the extruder in the MakerBot Replicator 2 and they have been well documented. The court inferred that the company had not behaved impeccably, but there was no evidence of serious malpractice. It can take a few time for the dust to clear, yet, and new CEO Jonathan Jaglom has a big job on his hands.
MakerBot was the darling of the industry at one point and investors wanted a piece of the action. At its peak the New York-based company had additional than 500 employees, having started with 60 in 2009. It was a totem for the industry.
There were bold predictions for world domination and all things looked great when Stratasys bought the company for $400 million in 2013. But MakerBot ran into high end control issues with the ‘Smart Extruder’ on its Replicator 2, the manufacturer community turned on the company for profiting of open source work, its reputation suffered and last year the company laid off a number of its staff on two separate occasions.
This year parent company Stratasys outsourced the making and MakerBot is now a shadow of its former self.
Of course it can come back, the question is if it can. The company is yet going, Stratasys is one of the largest names in 3D printing and there is always future in such a young industry and an actually younger business for the company to turn around.
A number of investors, yet, felt they hadn’t been given the full factors and launched a class action lawsuit. There was actually talk of Securities Fraud, as the investors claimed they had been oversold on the printing device’s future and indeed the say of the company’s health.
Stratasys did predict 25% growth in 2013, that was additional than reasonable thinking the growth in the industry and the expanding public acceptance of 3D printing. It couldn’t account for the problems with the new printing device, yet, and the impact they may have on the company.
This was dismissed out of hand by the judge. The court mentioned those sayments as ‘non-actionable puffery’. So the investors can feel aggrieved that the shares that were valued at $120 in September 2014 to $30 just a year later, but the courts have dealt with the case and it’s over.
The judge did not grant leave to appeal, so this case is done. What does that mean for MakerBot? Well it yet faces a mountain to climb and the new CEO can have to work wonders to store the company going, let alone going forward.
Other manufacturers have stolen a march, MakerBot’s market share has dropped and now it must convince a sceptical manufacturer community of the company’s intentions and its viability. Good can is thin on the ground in the industry and that can be the largest hurdle facing the company right now.
The just way to overcome this is to manufacture impressive products. We’ll be watching this one with interest and we’d like to see a fewthing additional of a company that has been on the ropes for a while.
by admin • March 5, 2017
by admin • November 28, 2016
by admin • November 28, 2016