The complaint, filed by Hagens Berman, alleges that PROCEPT incentivized buyers to stock up on single-use handpieces for its Aquablation therapy through late-quarter discounts. This strategy effectively pulled future revenue into the present, creating an illusion of growth while building up excess inventory that reached over 10,000 units. Investors claim the company withheld the reality of these inventory levels while consistently touting sales performance.
In section Releases
Investors Sue PROCEPT BioRobotics Over Alleged Sales Inflation Scheme
A federal securities class action lawsuit accuses PROCEPT BioRobotics of artificially inflating revenue by pushing bulk handpiece discounts to customers, a practice that allegedly masked weak actual demand. The litigation targets claims made between February 2024 and February 2026, a period marked by repeated missed sales targets.
Signs of trouble emerged in August 2025, when the company missed financial estimates. The situation worsened by November, when management reduced guidance and acknowledged that customers were holding too much stock. By February 25, 2026, the company admitted that U.S. handpiece sales had materially exceeded actual procedure counts for years. Following these disclosures, PROCEPT shares dropped by more than 48% compared to their August 2025 peak. Reed Kathrein, a partner at Hagens Berman, stated the firm is investigating whether the company intentionally manipulated sales data to meet market expectations at the expense of long-term transparency.
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