Cutera Inc - CUTR STOCK NEWS

Voce Capital Management responds to recent Board activities at Cutera (NASDAQ: CUTR), highlighting significant governance concerns.

J. Daniel Plants and David Mowry, who own 7% of shares, criticize the Special Committee for misleading statements and a flawed CEO succession process. They claim that their recent ouster as Chairman and CEO was unjustified, leading to a 30% drop in stock value after the announcement.

They assert that the Entrenched Directors lack substantial stock ownership and fail to represent shareholder interests. The upcoming Special Meeting on June 9, 2023, is pivotal for determining the future leadership and governance of Cutera.

The Special Committee of CUTERA has issued an open letter addressing stockholders regarding former Executive Chairman J. Daniel Plants' attempts to remove current directors and assume the CEO position. The Board replaced CEO David Mowry due to his poor execution and inability to effectively lead the company's commercial rollout of the AviClear solution. Plants sought to be named CEO, demanding excessive compensation and governance terms that would undermine Board oversight. The Board has appointed Sheila A. Hopkins as Interim CEO and initiated a search for a permanent replacement to steer the company forward. The Board remains committed to maximizing value for stockholders despite Plants' ongoing campaign.

Cutera, Inc. (NASDAQ: CUTR) announced a Special Meeting of Stockholders scheduled for June 9, 2023, at 9:00 am PT in Brisbane, California. The meeting aims to consider proposals from J. Daniel Plants and David Mowry to remove five out of six independent directors (the 'Targeted Directors'). A Special Committee has been established to review these proposals and will recommend how stockholders should vote. The Special Committee chair, Juliane T. Park, expressed confidence that stockholders will support the Targeted Directors, who have been serving diligently. Further details will be provided in a definitive proxy statement to be filed with the SEC. Stockholders are advised to await the proxy materials before taking action.

RTW Investments, which manages approximately 9.3% of Cutera's shares, has urged the company to hold a Special Meeting of Stockholders to discuss the recent removal of CEO David Mowry. RTW believes the Board's decision to terminate Mowry needs further scrutiny and that he should be reinstated as interim CEO while a replacement is sought. RTW asserts that the market's reaction to the CEO's removal indicates a loss of confidence in the Board and emphasizes the importance of hearing stockholder voices through the Special Meeting. The firm maintains that with appropriate leadership, Cutera's innovative products could significantly benefit stockholders.

Cutera, Inc. (NASDAQ: CUTR) faces internal turmoil as a lawsuit has been filed against its Board of Directors by major shareholders J. Daniel Plants and David Mowry, who together own about 7% of the company's shares. The lawsuit, filed on April 11, 2023, challenges the Board's recent decision to fire Plants as Executive Chairman and Mowry as CEO, alleging this was retaliation for their efforts to remove certain entrenched directors. The shareholders demand reopening the nomination window for the upcoming 2023 Annual Meeting to allow shareholders a say in Board representation. Concerns include breaches of fiduciary duty and manipulation of events by the Board to preserve their control, which has reportedly led to wasted shareholder capital. Both Plants and Mowry urge shareholders not to be misled by the actions of the Board.

Cutera, Inc. (Nasdaq: CUTR) has announced significant executive leadership changes, appointing Sheila A. Hopkins as Interim CEO and Janet D. Widmann as Independent Chair of the Board, effective immediately. This decision follows the termination of Executive Chairman Daniel Plants and CEO David Mowry for cause. The Board is actively searching for a permanent CEO. In conjunction with these changes, the company has withdrawn its full-year 2023 outlook, indicating a shift in strategic focus. Ms. Hopkins aims to advance the company’s AviClear strategy while maintaining core business operations. Ms. Widmann emphasized the Board's commitment to acting in the best interest of Cutera’s stockholders. The company's future leadership direction will be crucial for its performance and market position.

Cutera, Inc. (NASDAQ: CUTR) announced support from its senior management for its current strategic path under CEO David Mowry and Executive Chairman J. Daniel Plants. The letter of support sent to the Board was signed by ten executives, highlighting concerns that ongoing board conflicts may harm the company’s operations and relationships with customers. They emphasized that the current strategic plan is effective, particularly the shift toward First mover devices like AviClear, which aligns with customer needs and drives transformation. The executives expressed their trust in Mowry's leadership and urged a quick resolution to board issues to prioritize customers and operational focus.

Pura Vida Investments, LLC, a major shareholder of Cutera (7% ownership), has expressed serious concerns over internal disputes within the company's Board of Directors. The group claims these conflicts have led to the significant undervaluation of Cutera and its products, particularly highlighting the potential of the AviClear product cycle. Pura Vida urges the Board to resolve their issues swiftly and suggests extending the director nomination deadline for better shareholder engagement. If the Board fails to act, they are prepared to explore alternative strategies, including the introduction of new directors and a world-class CEO to facilitate a successful transition for the company.