PROCEPT BioRobotics faces securities fraud suit as PRCT fell 18%

Investors have until Sept. 22 to seek lead plaintiff status in a securities fraud class action against PROCEPT BioRobotics (NASDAQ: PRCT) over allegedly inflated handpiece sales.

The complaint, filed in the U.S. District Court for the Northern District of California, alleges the company used a discount program to push bulk orders beyond actual demand, artificially inflating reported U.S. handpiece unit sales, according to Kessler Topaz Meltzer & Check, which is publicizing the case. The undisclosed program left customers overstocked and exposed the company to operational and financial risk, the complaint says.

The class period runs from Feb. 28, 2024, through Feb. 25, 2026. On Feb. 25, PROCEPT reported 2025 and first-quarter 2026 earnings, revealing that handpiece sales had exceeded procedures in every quarter since the first fiscal quarter of 2023 despite prior reassurances. Shares fell more than 18 percent on the news.

The case, Operating Engineers Construction Industry and Miscellaneous Pension Fund v. PROCEPT BioRobotics, No. 26-cv-07691, seeks damages for investors who bought PRCT common stock during the class period. The company, which makes the Aquablation therapy system for benign prostatic hyperplasia, faces potential settlement or liability costs on top of the share decline. The system uses a single-use handpiece disposed after each procedure, making unit sales a recurring revenue driver central to the growth narrative.

Schall, Brown & Schwartz and Kaplan Fox & Kilsheimer have issued similar notices to shareholders. The claims cite violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. A lead plaintiff, typically the investor or group with the largest financial interest, will direct the litigation; investors who do not seek the role can still share in any recovery. Representation is offered on a contingency fee basis, with no cost to class members.

The lawsuit adds legal overhang to a stock already down sharply on the disclosure. Investors will watch for the lead plaintiff appointment and any company response to the allegations in the coming months.

This article is for informational purposes only and does not constitute investment advice.