Pomerantz Named Lead Counsel in Shareholder Suit Against Danaher

Pomerantz was recently appointed Lead Counsel in a securities class action against medical and commercial manufacturing conglomerate Danaher Corporation. The suit alleges that Danaher misled investors about the company’s financial prospects following the growth it experienced during the COVID-19 pandemic.

As a manufacturer of medical products, Danaher experienced a period of revenue expansion in 2020 and 2021 during the height of the COVID-19 pandemic. One of Danaher’s subsidiaries is Cepheid, a leading molecular diagnostics company, and Danaher’s life sciences segment includes a variety of companies that work to develop COVID-19 therapies and vaccines. The lawsuit alleges that Danaher failed to disclose that, as the COVID-19 pandemic waned and the associated growth declined, the revenue from its other segments was insufficient to compensate for the contraction in the areas buoyed by the pandemic. In April 2023, Danaher issued a press release outlining a decrease in revenue compared to the previous year and projecting lower-than-anticipated growth for the remainder of the year, a statement seeming to contradict prior reassurances given by the company. On the news, Danaher’s stock price fell nearly 9%.

Danaher’s President and CEO Rainer M. Blair and Executive Vice President and CFO Matt McGrew are also named as defendants in the suit.