Mazor Robotics is facing a class action litigation suit in the United States District Court for the Southern District of New York.
On June 8, the company reported Israeli Securities Authority conducted an investigation in May, searching offices and questioning officers.
Here are five insights:
1. Kaplan Fox & Kilsheimer is investigating Mazor on behalf of investors who purchased the company's American Depositary Receipts or other securities. Investors purchased the receipts between Nov. 8, 2016, and June 8, 2017.
2. The investors allege Mazor violated the Securities Exchange Act of 1934.
3. The lawsuit involves Mazor allegedly making materially false and misleading statements during the Class Period.
4. Additionally, investors allege Mazor didn't disclose they were involved in conduct that warranted an Israeli Securities Authority investigation, and therefore was at potential liability.
5. After Mazor announced the investigation on June 8, its ADRs dropped by 9.9 percent. By June 9, the ADRs fell an additional 9.15 percent.