Zimmer Biomet Holdings, Inc. (ZBH) Investigation

The investigation is focused on the propriety of Zimmer Biomet’s statements about the reasonableness of management’s assumptions going into its forecasting process.

As recently as Zimmer Biomet’s August 7, 2025 Q2 2025 earnings call, the company’s management assured investors that its updated 2025 year-over-year organic revenue growth forecast of 3.5% to 4.5% would be achieved in large part because of “the emerging markets distributor purchase[]” and said “I’ll be very surprised if Q3 is not a number scratching 6%.”

Management also assured investors that “I have more conviction in our strategy and team than ever” and “our confidence in the second half revenue growth expectation is very high.”

These statements drove the price of the company shares up over 7% that day.

Investor disappointment set in on November 5, 2025. That day, Zimmer Biomet reported its results for Q3 2025 revealing that year-over-year organic revenue growth was just 5%. The company also reduced its top-line organic revenue growth forecast to 4% and revealed that “emerging markets represented a headwind to growth.”

In addition, Zimmer Biomet revealed that during the quarter it experienced distributor orders cancelations in emerging markets, mainly the Middle East and Eastern Europe, it widely missed its forecast in Latin America, and it is “making leadership and governance changes in some of our international businesses to address some of the headwinds that we’ve seen in these geographies throughout the year 2025.”

In response to an analyst’s question during the earnings call about management’s guidance philosophy, the company’s CEO (Ivan Tornos) assured the analyst that “effective today” “we, or rather I need to be far more measured in our external commentary.”

The market swiftly reacted, sending the price of Zimmer Biomet shares down 15% that day.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the ZBH investigation about?

We are investigating the extent to which company leadership was aware of the apparently quite serious headwinds in its emerging markets business and, if so, whether it accurately informed investors by last August.

WHAT SHOULD I DO?

I worked at ZBH. What should I do?

If you were an employee of ZBH, 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 ZBH@hbsslaw.com.

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 PARTICIPATE?

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

If you were an investor in ZBH, 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 ZBH 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.