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No. of Recommendations: 0
Boy, there has been a lot of this lately, especially with 3DP companies. Any time a company's stock takes a big dip, there are attorney firms out there that gin up one of these suits. They find a couple of investors to form the basis for their class action and file suit claiming that the company did something wrong or failed to disclose information in a timely basis and this caused the drop in price. Almost never do these suits ever get anywhere close to court. The company will offer a settlement to make the suit go away because the cost of the settlement will be less than the legal costs to fight it in the courts, even if they were 100% sure of winning. The attorneys will take the settlement because it means they will get a bunch of money for doing almost no work. Actual shareholders will receive next to nothing because all the meaningful money will go to the attorneys.

Don't take such things seriously in evaluating the company. Could be the fall in stock price is a reason to re-evaluate your position, but not the suit.
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