In re Intuitive Surgical Securities Litigation

The Firm secured a $42.5 million recovery in this securities class action against da Vinci Surgical System maker Intuitive Surgical.

The action was commenced on April 26, 2013.  On November 18, 2013, the Court issued an Order appointing Hawaii ERS as lead plaintiff pursuant to the PSLRA.  In the same Order, the Court approved lead plaintiff’s selection of Labaton Keller Sucharow LLP as lead counsel.

On September 1, 2015, lead plaintiff Hawaii ERS and named plaintiff Greater Pennsylvania Carpenters’ Pension Fund (Greater Pennsylvania) filed a motion for class certification.  Following briefing on the motion and oral argument, on December 22, 2016, the Court issued an Order granting the class certification motion, certifying the Class as defined above, appointing lead plaintiff Hawaii ERS and named plaintiff Greater Pennsylvania as “Class Representatives,” and appointing lead counsel as “Class Counsel.”  On January 5, 2017, Defendants filed, in the United States Court of Appeals for the Ninth Circuit, a Petition Pursuant to F.R.C.P. 23(f) for Permission to Appeal the District Court’s Order Granting Class Certification.  On October 30, 2017, the Ninth Circuit denied the petition.  Beginning on April 9, 2018, the Class Notice was mailed to potential Class Members.

The operative complaint in the Action, the Second Amended Consolidated Complaint (Complaint), was filed on January 26, 2017.  The Complaint alleges that Intuitive and certain of its executives violated Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 (the Exchange Act) by making materially false and misleading statements regarding the safety and efficacy of the da Vinci Surgical System and Intuitive’s compliance with FDA regulations.  Class Representatives further allege that when news of the safety and regulatory issues was released to the public, the price of Intuitive common stock declined, and Class Members suffered damages as a result.  On February 9, 2017, Defendants moved to dismiss the Complaint and on September 29, 2017, the Court issued an Order denying Defendants’ motion to dismiss in its entirety.

On February 9, 2018, Defendants moved for summary judgment.  Class Representatives filed their opposition papers on March 23, 2018, and, on April 23, 2018, Defendants filed their reply papers.  The motion was pending when the Parties agreed to a settlement in principle.

Fact discovery concluded on September 30, 2016.  Expert discovery concluded on December 15, 2017.  A trial date in this Action was set for October 30, 2018.

On June 6, 2018, following extensive arm’s-length negotiations, the Parties reached an agreement in principle to settle the Action for $42,500,000, subject to the execution of formal settlement documents.

The case is In re Intuitive Surgical Securities Litigation, No. 13-cv-01920 (N.D. Cal.).  Labaton Keller Sucharow represents lead plaintiff Employees’ Retirement System of the State of Hawaii.  The defendants are Intuitive Surgical, Inc. and its CEO Gary Guthart, CFO Marshall Mohr, and Chairman Lonnie Smith.

Submit Proof of Claim

If you purchased or acquired the publicly traded common stock of Intuitive during the period from February 6, 2012, through July 18, 2013, inclusive, you may be entitled to receive money from the proposed settlement.  To be eligible for a payment, you must submit a Claim Form by December 6, 2018, in accordance with the instructions set forth in the Settlement Notice.

Settlement Hearing

A Settlement Hearing was held on for December 20, 2018, before the Honorable Edward J. Davila in Courtroom 4, 5th Floor of the Robert F. Peckham Federal Building & United States Courthouse, 280 South 1st Street, San Jose, CA 95113.  If you have questions about the settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com or 1-888-219-6877, or contact the Claims Administrator, GCG, at 1-844-850-7746.

Additional information about the settlement can also be found at www.intuitivesurgicalsecuritieslitigation.com.