Shocker: These 4 Stocks May Be Victims of Class Action Lawsuits - Here's What You Need to Know

A recent announcement from Bragar Eagel & Squire, P.C., a leading shareholder rights law firm, has sent shockwaves through the financial world as it revealed that class actions have been commenced on behalf of stockholders of four prominent companies: Outset Medical, Inc. (NASDAQ: OM), Starbucks Corporation (NASDAQ: SBUX), Endava PLC (NYSE: DAVA), and Sage Therapeutics, Inc. (NASDAQ: SAGE).

This move comes as a result of allegations that these companies have engaged in wrongdoing, including making false and/or misleading statements to investors. Stockholders of these companies are eligible to petition the court to serve as lead plaintiff in the respective class actions by the designated deadlines. For Outset Medical, Inc., the deadline is October 28, 2024.

In regards to Outset Medical, Inc., the class action claims that the company made false and/or misleading statements regarding their Tablo products, which are designed for dialysis. It's alleged that these products were marketed for continuous renal replacement therapy, an indication that has not been approved by the United States Food and Drug Administration (FDA). Furthermore, it's stated that the company was reasonably likely to submit an additional 510(k) application for the Tablo products and that there was a substantial risk that the company would cease sales of the Tablo products pending FDA approval of additional indications.

Additionally, the class action lawsuit claims that Outset Medical, Inc. lacked the proper sales team and process to meet the demand for their Tablo sales, ultimately leading to adverse impacts on their revenue growth. The lawsuit asserts that the company's positive statements about their business were misleading and lacked a reasonable basis.

The recent news has raised concern among investors and the general public. Class action lawsuits are an essential component of corporate accountability and allow for individuals who have been financially damaged to seek justice. With the filing of these class actions, those who hold shares in the aforementioned companies have the opportunity to receive compensation for possible financial losses.

Stockholders are advised to consult with a financial advisor and/or seek the guidance of a reputable law firm to discuss the options available to them. Investing in the stock market can be a lucrative endeavor, but it's crucial to stay informed and remain vigilant about the potential risks and obstacles associated with the companies in which you invest.