Key Takeaways:
PROCEPT BioRobotics faces a securities class action alleging handpiece sales were inflated by an undisclosed discount program, after shares fell more than 75 percent.
"We're focused on whether PROCEPT may have intentionally pulled-in sales from future quarters to make it seem like the company was meeting expectations and, if so, whether the company had been sufficiently transparent in its investor communications," Reed Kathrein, the Hagens Berman partner leading the investigation, said.
The lawsuit seeks investors who bought PROCEPT common stock between Feb. 28, 2024 and Feb. 25, 2026, with lead plaintiff applications due Sept. 22, 2026. The case, Operating Engineers Construction Industry and Miscellaneous Pension Fund v. PROCEPT BioRobotics Corp., No. 26-cv-7691, is pending in the U.S. District Court for the Northern District of California.
The complaint alleges PROCEPT's recurring revenue model depended on handpiece sales tied to its AquaBeam Robotic Systems, used to treat enlarged prostate. The company disclosed Feb. 25, 2026 that U.S. handpiece sales exceeded procedures in every quarter since Q1 2023, leaving cumulative excess field inventory of more than 10,000 units.
Investors learned of the gap through a series of partial disclosures, each driving shares lower. On Aug. 6, 2025, PROCEPT reported Q2 results showing handpiece sales missed consensus by a wide margin, sending shares down 16 percent over two days to $38.41. On Nov. 4, 2025, the company cut annual handpiece guidance by 1,000 units and said some customers were "probably carrying too much" inventory, dropping shares 10 percent to $31.30.
On Feb. 25, 2026, PROCEPT reported Q4 results revealing U.S. handpiece sales contracted about 30 percent, to 9,400 units from 13,225 in the prior quarter, and said it was eliminating the previously undisclosed bulk-order discount program. Shares fell 18 percent over two days to $22.69, bringing the cumulative decline from Aug. 6, 2025 to more than 48 percent.
The complaint also names Hisham Shiblaq, PROCEPT's chief commercial officer from March 2019 to September 2025, as a defendant. Plaintiffs assert claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
The lawsuit gives investors a path to seek accountability for the gap between reported handpiece sales and actual procedures. The Sept. 22 lead plaintiff deadline will determine who directs the case, and any settlement could weigh on PROCEPT as it works through excess field inventory.
This article is for informational purposes only and does not constitute investment advice.
