PRCT investors face Sept 22 deadline in PROCEPT securities lawsuit

PROCEPT BioRobotics faces a securities class action over an undisclosed handpiece discount program that inflated sales, with a Sept 22 lead plaintiff deadline.

"We're focused on whether PROCEPT may have intentionally pulled-in sales from future quarters to make it seem like the company was meeting expectations and, if so, whether the company had been sufficiently transparent in its investor communications," Reed Kathrein, the Hagens Berman partner leading the firm's investigation, said.

The lawsuit, filed in the US District Court for the Northern District of California, San Jose Division, covers investors who bought PROCEPT common stock between Feb 28, 2024 and Feb 25, 2026. The complaint alleges the company used an extensive discount program to incentivize customers to place bulk handpiece orders exceeding procedure demand, pulling forward sales at the expense of future periods and artificially inflating reported unit sales and revenue.

Investors learned the truth through a series of partial disclosures. On Aug 6, 2025, PROCEPT reported Q2 2025 results showing handpiece sales missed consensus estimates by a wide margin. On Nov 4, 2025, the company cut annual handpiece guidance by 1,000 units for "field inventory optimization," with management acknowledging some customers were "probably carrying too much" inventory. On Feb 25, 2026, PROCEPT disclosed actual procedure data for the first time, revealing U.S. handpiece sales exceeded procedures each quarter since Q1 2023 and cumulative excess inventory of more than 10,000 units.

The stock fell more than 75%, or about $75 per share, from an all-time high near $100 to below $25. By Feb 25, 2026, shares had declined $22.06, or over 48%, from the Aug 6, 2025 close. The company's AquaBeam Robotic Systems, used in Aquablation therapy for enlarged prostate, generated recurring handpiece revenue that underpinned its valuation.

The complaint also points to April 2025, when Chief Financial Officer Kevin Waters maintained full-year expectations of approximately 52,500 handpieces and cited confidence in quarterly procedure volumes. Rosen Law Firm, Levi & Korsinsky and Hagens Berman are among the firms representing investors in the action.

The Sept 22 lead plaintiff deadline determines who directs the litigation. Investors who purchased during the class period may be eligible for compensation without out-of-pocket costs through a contingency fee arrangement, and must move the court by that date to serve as lead plaintiff.

This article is for informational purposes only and does not constitute investment advice.