Inari Medical, Inc. (NARI) Investigation

Inari Medical shares recently tumbled after the commercial-stage medical device company disclosed it was being investigated by the DOJ over certain payments to healthcare professionals.

The disclosure of the federal probe stands in contrast to the positive statements the company made in previous quarters concerning the company’s “record revenue” purportedly driven by “the strength in our core [venous thromboembolism] VTE business.”

But on Feb. 29, 2024, the true drivers of Inari’s revenue growth came into question, when Inari revealed that federal regulators had initiated an investigation into its payments to Health Care Professionals (“HCPs”) sometime during Dec. 2023. Specifically, Inari disclosed that the Department of Justice had served it with a civil investigative demand (“CID”) under the federal Anti-Kickback Statute and Civil False Claims Act, demanding information and documents primarily relating to the company’s payments to HCPs.

The disclosure prompted analysts at Piper Sandler to downgrade NARI to neutral and lower its price target for the stock to $55 from $85, adding that the DOJ investigation may present an overhang on the shares.

This news sent the price of Inari shares crashing $12.14, or down about 21%, on Feb. 29, 2024.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the NARI investigation about?

We are investigating the propriety of Inari’s touted revenue growth and repeated claims that its strategy had positioned it for sustained operating profitability by the first half of 2025.

WHAT SHOULD I DO?

I worked at NARI. What should I do?

If you were an employee of NARI, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICPATE?

Am I affected? What do I need to do to participate?

If you were an investor in NARI, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any NARI investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.