Invacare Corporation: Milberg Coleman Bryson Phillips Grossman PLLC Announces Investigation of Invacare Corporation

Rhea-AI Summary

Milberg Coleman Bryson Phillips Grossman PLLC is investigating Invacare Corporation (IVC) following a warning letter from the FDA regarding procedural violations associated with oxygen concentrators. The letter demands prompt corrections, warning of potential regulatory actions if not addressed. Since the letter's issuance in November 2021, IVC's stock has significantly declined, dropping from $4.13 per share to under $3.00. Additionally, IVC is exploring a potential sale, having received a preliminary bid valuing the company at $5 per share.

Positive

• Invacare is exploring a potential sale, with a preliminary bid valuing it at $5 per share.

Negative

• IVC's stock price has declined from $4.13 to below $3.00 since the FDA warning letter.
• Following the FDA letter, IVC's share price fell to as low as $2.18, significantly down from $10.94 in January 2021.
• The FDA warning highlights serious procedural violations, risking regulatory actions.

NEW YORK, Jan. 31, 2022 /PRNewswire/ -- Milberg Coleman Bryson Phillips Grossman PLLC ("Milberg") is currently investigating Invacare Corporation (Invacare) (NYSE: IVC) in connection with the issuance of a warning letter to Invacare by the United States Food & Drug Administration (FDA) in November 2021, and other matters described below. 

The FDA warning letter outlined a number of violations found during an inspection earlier in 2021.  According to Invacare, the FDA warning letter related to "the company's procedures involving complaint handling, corrective and preventive action and medical device reporting associated with oxygen concentrators." The FDA letter admonished Invacare to "take prompt action to correct the violations addressed in this letter," and warned that "[f]ailure to promptly correct these violations may result in regulatory action being initiated by the FDA without further notice." 

On Thursday, November 18, 2021, the date of the FDA letter, IVC's common stock reportedly reached $4.13 per share in trading on the NYSE, and closed at $3.93 per share. The next day, Friday, November 19, 2021, shares of IVC closed at $3.62 per share, down $0.51 from the previous day's high. Since then IVC's stock price has continued to fall, dropping below $3.00 per share at the end of November 2021 and trading below $3.00 per share almost consistently since then. 

Following its receipt of the FDA letter, on December 1, 2021 Invacare announced the "strategic business realignment" of its Europe and Asia Pacific businesses under a single leader to "streamline operations and enhance the customer experience." On December 6, 2021, Invacare shares reportedly fell as low as $2.18 per share, down drastically from a high of $10.94 in January 2021. On January 5, 2022, streetinsider.com reported that Invacare was exploring a potential sale of the company and had received a preliminary bid valuing the company at $5 per share.   

Milberg's investigation concerns, among other things, potential misconduct and claims involving failures of oversight, possible breaches of fiduciary duty and other possible violations of law by Invacare's directors and/or officers. Persons with relevant information, and/or Invacare shareholders with questions about this investigation, are invited to contact our Firm using the information listed below.

About Milberg: For over 50 years, Milberg and its affiliates have been fighting to protect victims' rights and have recovered over $50 billion for clients. A pioneer in class action litigation, Milberg is widely recognized as a leader in defending the rights of victims of corporate wrongdoing.

Contact:
Kent A. Bronson, Esq.
c/o Milberg Coleman Bryson Phillips Grossman PLLC
100 Garden City Plaza
Garden City, NY  11530
866.252.0878
kbronson@milberg.com
 
ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.

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SOURCE Milberg Coleman Bryson Phillips Grossman PLLC

FAQ

What investigation is Milberg conducting regarding Invacare (IVC)?

Milberg is investigating Invacare following a FDA warning letter related to procedural violations.

What triggered the stock decline of Invacare (IVC)?

Invacare's stock decline was triggered by an FDA warning letter and subsequent operational issues.

What was the stock price of Invacare (IVC) following the FDA warning letter?

After the FDA warning letter, IVC's stock fell from $4.13 to below $3.00.

What are the key issues highlighted in the FDA warning letter to Invacare (IVC)?

The FDA letter highlighted violations concerning complaint handling and medical device reporting.

Is Invacare (IVC) considering a sale?

Yes, Invacare is exploring a potential sale, with a valuation of $5 per share.