Suit Over Revenue Recognition Fraud At Medical Robotics Concern Dismissed

The U.S. District Court for the Northern District of California Aug. 25 dismissed a putative class securities fraud action stemming from improper revenue recognition practices at Hansen Medical Inc., a medical robotics concern (Curry v. Hansen Medical Inc.).

Judge Jeremy Fogel found in an unpublished order that the plaintiff investors failed adequately to allege the scienter element of their 1934 Securities Exchange Act Section 10(b) claims. He granted the plaintiffs 30 days to file an amended complaint.

Despite the length of the complaint, the court said, the plaintiffs’ allegations taken together do not preclude the possibility that ...