We have filed a class action lawsuit on behalf of shareholders against STAAR Surgical Company (NASDAQ: STAA) and certain of its executives for securities fraud.
Recently,STAAR has emphasized its revenue, sales growth, and market share in the Chinese market. STAAR attributed its success to its strategic partnerships, including with its customer AIER, a Chinese ophthalmology hospital group.
On August 11, 2020, analyst J Capital Research Limited published a report calling into STAAR’s purported success in China. In its scathing report, J Capital accused STAAR of overstating its sales in China by at least one-third (or $21.6 million), “meaning all of the company’s $14 mln in 2019 profit is fake.” The report is based on “over 75 interviews” conducted by J Capital, as well asvisits to STAAR locations in China and Switzerland. In particular, J Capital’s report concluded that AIER’s financial statements indicate that it bought only about half as many lenses as STAAR reported. On this news, the price of STAAR shares fell precipitously.