PROCEPT BioRobotics Corporation (PRCT) Securities Class Action Litigation
Introduction
Securities class action litigation has been filed on behalf of investors who purchased the common stock of PROCEPT BioRobotics Corporation (“Procept” or the “Company”) (NASDAQ: PRCT) between February 28, 2024 and February 25, 2026, inclusive (the “Class Period”).
If you purchased the common stock of Procept during the Class Period, you may move the Court for appointment as lead plaintiff by no later than September 22, 2026.
A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions.
Procept investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should complete the form below, text or email investorinfo@lchb.com, or call Lieff Cabraser partner Sharon M. Lee at 1-800-541-7358.
Background on the PROCEPT BioRobotics Securities Class Litigation
Procept, headquartered in San Jose, California, is a medical technology company that manufactures and sells surgical devices that deliver its Aquablation therapy for the treatment of benign prostatic hyperplasia (“PBH”), commonly known as an enlarged prostate. The therapy uses a high-velocity, saline water jet to remove unwanted prostatic tissue and to alleviate PBH symptoms. Each of Procept’s devices consist of an image-guided surgical device (the “System”) and a single-use handpiece. Sales of handpieces became an increasingly large contributor to Procept’s revenues, and the Company’s financial performance largely depended upon sustained growth in handpiece sales.
The action alleges that, throughout the Class Period, Defendants misrepresented and failed to disclose that: (1) Procept used an undisclosed discount program to incentivize customers to make bulk orders of handpiece units in excess of procedure demand every quarter; (2) Procept’s undisclosed discount program artificially and unsustainably inflated its handpiece unit sales and revenues by pulling sales forward at the expense of future periods; (3) as a result of Procept’s illicit sales tactics, there was excess field inventory and overstocking amongst Procept’s customers, amounting to more than 10,000 excess handpiece units by the end of the Class Period; and (4) as a result of the foregoing, Defendants’ representations regarding Procept’s handpiece unit sales and utilization of the System were materially overstated, Procept’s revenue guidance for 2025 lacked any reasonable basis in fact, and Procept was exposed to material undisclosed risks of significant operational and financial harm. Procept insiders took advantage of the artificially inflated price of Procept common stock during the Class Period by collectively selling more than $90 million in Procept shares.
On August 6, 2025, Procept reported its Q2 2025 financial results, disclosing that the Company had only sold approximately 12,750 handpieces during the quarter. During Procept’s earnings call, its CFO, Defendant Kevin Waters, stated that the Company projected that 13,350 handpiece units would be shipped in the next quarter, well below consensus estimates. Procept’s then-CEO, Defendant Reza Zadno, revealed that the Company was eliminating its Chief Commercial Officer position in order to “strengthen” its “commercial execution.” On this news, the price of Procept common stock fell 13.4% from its closing price on August 6, 2025 to close at $39.59 per share on August 7, 2025, on extremely heavy trading volume.
On November 4, 2025, Procept reported its Q3 2025 financial results, disclosing that the Company had only sold approximately 13,225 handpieces during the quarter, well below guidance. During Procept’s earnings conference call, Defendant Waters stated that the Company was reducing its annual handpiece sales guidance from 53,000 units to 52,000 units so it could optimize its field inventory. Procept’s CEO and President, Defendant Larry L. Wood, further admitted that the Company had not “been managing customer inventory by establishing par levels,” and that some customers were likely “carrying too much inventory.” Defendant Wood disclosed that the Company’s efforts to destock and “optimize [the] par levels [of]” its inventory would influence subsequent quarter sales. On this news, the price of Procept common stock fell 9.7%, from its closing price on November 4, 2025 to close at $31.61 per share on November 5, 2025, on extremely heavy trading volume.
On February 25, 2026, Procept reported disappointing Q4 and FY 2025 financial results, revealing that its handpiece unit sales had materially exceeded procedures in every quarter since Q1 2023, which had resulted in cumulative excess field inventory of more than 10,000 handpiece units. Procept further revealed that, because of this inventory glut, its quarterly handpiece sales in the U.S. had declined from 13,225 units in the previous quarter to 9,400 units. As a result, Procept’s FY 2025 revenues missed its guidance by tens of millions of dollars. During Procept’s earning conference call, Defendant Wood stated that the Company was eliminating a longstanding discount program that incentivized customers to place bulk orders “[during] the final weeks” of every quarter and that handpiece sales had “historically” exceeded procedure volumes by 8% to 16%. On this news, the price of Procept common stock fell 15.1% from its closing price on February 25, 2026 to close at $23.63 per share on February 26, 2026, on extremely heavy trading volume.
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