Outset Medical Sued Over Post-Revelation Stock Drops of 50%, 69%

Outset Medical Inc. failed to disclose that its dialysis system was being marketed for a use the FDA hadn’t approved, an investor says in a suit citing 50% and 69% stock-price declines.

Both represented the largest percentage drops in the company’s stock price up to the dates they occurred—Oct. 13, 2023, and Aug. 8, 2024, respectively—according to data compiled by Bloomberg.

Outset’s positive statements about its business were misleading because it didn’t disclose enough information about its primary products, a dialysis machine called the Tablo Hemodialysis System and an accessory, the TabloCart, investor Chris Porcelli says.

He filed his proposed ...