Investors File Securities Class Action Against PROCEPT BioRobotics

The lawsuit, filed by Hagens Berman Sobol Shapiro LLP, alleges that PROCEPT misled shareholders regarding the health of its business by utilizing bulk discounts to inflate unit sales. According to the complaint, these incentives encouraged customers to stockpile handpieces for its Aquablation therapy well beyond actual procedural demand. This practice effectively pulled revenue from future periods, creating an artificial appearance of growth that masked underlying sales weakness.

The facade began to crumble through a series of quarterly disclosures. After missing consensus estimates in the second and third quarters of 2025, the company eventually admitted in February 2026 that cumulative excess inventory had reached 10,000 units. Management acknowledged the company had failed to properly monitor customer stock levels and subsequently eliminated the discount program that had incentivized the bulk purchasing. Following these revelations, PROCEPT shares fell by $22.06, a decline of more than 48% from their August 2025 peak. Partner Reed Kathrein noted that the firm is investigating whether leadership intentionally misrepresented these sales strategies to meet quarterly expectations.