Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Treace Medical Concepts, Inc. (TMCI)

/EIN News/ -- NEW YORK, April 14, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Middle District of Florida on behalf of all persons or entities who purchased the securities of Treace Medical Concepts, Inc. (“Treace Medical” or the “Company”) (NASDAQ: TMCI) between May 8, 2023 and May 7, 2024, both dates inclusive (the “Class Period”).

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose adverse facts about the Company’s business, operations, and prospects. The Complaint alleges that specifically, Defendants failed to disclose that: (1) competition impacted the demand for and utilization of its primary product, the Lapiplasty 3D Bunion Correction System (the “Lapiplasty”); (2) as a result, Treace Medical’s revenue declined and the Company needed to accelerate its plans to offer a product that was an alternative to osteotomy (a surgical procedure that involves cutting and realigning a bone to improve its position or function); and (3) Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

According to the Complaint, the truth began to emerge on May 7, 2024, after market hours, when the Company issued a press release, on a Form 8-K filed with the SEC, reporting its financial results for first quarter 2024 and fiscal year 2024 outlook. The Complaint alleges that during the associated earnings call the same day, Treace revealed competition from minimally invasive (“MIS”) osteotomy and Lapiplasty “knockoffs” created headwinds for Lapiplasty growth. The Complaint continues to allege that Treace also revealed the Company would release its own MIS osteotomy system. The Complaint further alleges that later on the call, it was revealed there had also been a shift in surgeon demand for Lapiplasty.

The Complaint alleges that, on this news, the Company’s stock price fell $6.95, or nearly 63%, to close at $4.17 per share on May 8, 2024, on unusually high volume.

Investors who purchased or otherwise acquired shares of Treace Medical should contact the Firm prior to the June 10, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.