SOURCE: Saxena White P.A.

February 23, 2015 14:16 ET

Saxena White P.A. Files Securities Fraud Class Action Against Stratasys, Ltd.

BOCA RATON, FL--(Marketwired - Feb 23, 2015) - Saxena White P.A. has filed a securities fraud class action lawsuit in the United States District Court for the Eastern District of New York against Stratasys, Ltd. ("Stratasys" or the "Company") (NASDAQ: SSYS) on behalf of investors who purchased or otherwise acquired the common stock of the Company during the period from June 20, 2013 through February 2, 2015 (the "Class Period).

Stratasys manufactures three-dimensional ("3D") printers. The printers build 3D models by depositing multiple layers of resin one on top of another based on data from 3D computer aided design files. The Company's products are used by designers, engineers and manufacturers to visualize, verify and communicate product designs.

On June 19, 2013, Stratasys announced the signing of a definitive merger agreement whereby privately held Cooperation Technology Corporation or "MakerBot" agreed to merge with a subsidiary of Stratasys in a stock-for-stock transaction. MakerBot was founded in 2009 and is a recognized brand in the desktop 3D printing market.

On February 2, 2015, after the close of the financial markets, Stratasys announced preliminary 2014 financial results as well as full-year 2015 guidance. The Company provided much lower than expected results (impacted by slower growth of MakerBot product and services revenue), disclosed a new investment plan that is expected to increase operating expenditures in 2015 and subsequent years, and also revealed that in December 2014, the Company updated the goodwill impairment analysis of its MakerBot reporting unit. As a result of the impairment analysis, the Company is expecting to recognize a non-cash, non-tax-deductible goodwill impairment charge of approximately $100 million to $110 million in the fourth quarter. In reaction to the news, Stratasys stock price plummeted $22.72 per share or 28.4% on extremely heavy trading volume from $80.08 per share on February 2, 2015 to $57.36 per share on February 3, 2015 -- wiping out over $1.1 billion in the Company's market capitalization in one day.

The Complaint brings forth claims for violations of the Securities Exchange Act of 1934. The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects.

Specifically, the Complaint alleges that during the Class Period Defendants repeatedly issued positive statements regarding the Company's recently acquired subsidiary MakerBot and its products and repeatedly provided unsupported financial guidance. As a result of these false and misleading statements and omissions, Stratasys stock traded at artificially inflated prices throughout the Class Period, reaching a high of $129.28 per on September 18, 2014 and allowed the Company to complete two stock offerings which netted the selling shareholders more than $230 million. You may obtain a copy of the Complaint and join the class action at www.saxenawhite.com.

If you purchased Stratasys stock between June 20, 2013 and February 2, 2015, inclusive, you may contact Lester Hooker (lhooker@saxenawhite.com) at Saxena White P.A. to discuss your rights and interests.

If you purchased Stratasys common stock during the Class Period of June 20, 2013 through February 2, 2015, and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than April 6, 2015. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.

Saxena White P.A., located in Boca Raton, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.

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