3D Systems Misled Investors About Demand, Shareholder Suit Says

3D Systems Corp. and its top brass were hit with a proposed shareholder class action alleging the 3D printing company misled investors about its financial condition and business prospects.

3D Systems understated how weakened customer spending on 3D printing affected its business while overstating its resilience in challenging industry conditions, according to a lawsuit filed in the US District Court for the District of Delaware.

The company also failed to disclose that updated “milestone criteria” under a partnership with biotech giant United Therapeutics Corp. to 3D print lungs would negatively affect 3D Systems’ revenue from its Regenerative Medicine Program, the June 13 suit said.

The misstatements and omitted statements were intended to deceive investors and “artificially inflate” the market price of 3D Systems securities, the proposed class action said.

3D Systems’ stock price fell significantly—by more than 20% in each case—after the company reported disappointing quarterly results in March and May of this year, according to the suit.

The lawsuit seeks damages for alleged violations of federal securities laws on behalf of investors who purchased 3D Systems stock from Aug. 13, 2024, to May 12, 2025.

It also named 3D Systems CEO Jeffrey Graves and CFO Jeffrey Creech as defendants.

“As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages,” the suit said.

Rock Hill, S.C.-based 3D Systems didn’t immediately respond to a request for comment.

The company supplies 3D printing and digital manufacturing products globally, including through its two revenue-generating segments: Healthcare Solutions and Industrial Solutions.

3D Systems paid $50 million in 2018 to resolve a previous shareholder suit alleging it made misleading statements about demand for its products, and it disclosed in 2022 that it had received a subpoena from the Securities and Exchange Commission over allegedly inaccurate statements.

Bielli & Klauder LLC and Pomerantz LLP represent the shareholder plaintiff.

The case is Herbermann v. 3D Systems Corp., D. Del., 1:25-cv-00734, complaint filed 6/13/25.