Court Approves $10.9 Million Settlement In Sientra Shareholder Litigation
Wolf Popper served as co-lead counsel for the class in an action asserting federal securities claims on behalf of purchasers of Sientra, Inc. (“Sientra”) common stock in Flynn v. Sientra, Inc., Case No. 2:15-cv-07548-SJO-RAO (C.D. Cal.). Sientra sold breast implants made by a Brazilian manufacturer in Rio de Janeiro, Silimed Indústria de Implantes Ltda. (“Silimed”), with whom Sientra had extensive relationships. Plaintiffs alleged that, unbeknownst to the public, in the spring and summer 2015, European regulators discovered that the implants manufactured in that facility were contaminated with foreign particulates, and that Silimed had performed its own inspection and reached the same conclusion. Shortly thereafter, Sientra, which needed a cash infusion, announced a $65 million secondary offering, but made false and misleading statements regarding manufacturing and quality assurance of products from Silimed; and the offering documents did not disclose that widespread contamination at that facility had been found by regulators, and confirmed by Silimed, well before the SPO. Minutes after the SPO closed, the contamination was revealed by the European regulators, causing the price of Sientra’s common stock to plummet. On June 9, 2016, Judge S. James Otero denied in substantial part defendants’ motions to dismiss. Flynn v. Sientra, Inc., 2016 U.S. Dist. LEXIS 83409 (C.D. Cal. June 9, 2016), motion for reconsideration denied, slip op. (C.D. Cal. Aug 12, 2016). On May 22, 2017, the court approved a settlement of the litigation for $10.9 million in cash.