Inari Medical Hit With Investor Suit After DOJ Probe Revealed

Inari Medical Inc. was sued by a shareholder over a stock price drop after the medical device company revealed it faced a US Department of Justice investigation into payments to health-care providers.

The proposed class action, filed Monday in the US District Court for the Southern District of New York, alleges Inari touted its product sales and results, while hiding that those numbers were inflated by the payments under scrutiny.

“Unbeknownst to investors, while Defendants were speaking positively about the Company’s growth prospects, it had been engaging in illegal business practices,” the complaint said.

Irvine, Calif.-based Inari makes devices for ...