Friday's investor concerns, which brought medical device maker
Lumenis emphasized that this is not an official SEC investigation, but an "unofficial request" to voluntarily provide information on its relationships with distributors and previous charges and write-downs in the period in question.
It appears that, based on Friday's nosedive to $13 or 50% below January share prices, news of the impending investigation leaked to the market during the day. The share lost another 31% at opening today, trading in the first minutes of trade at $8.92.
CEO Yacha Sutton today said, "This is not a positive development, but we have nothing to hide. Lumenis is relatively transparent and there is nothing improper to be found. In the short term the SEC request could depress the stock price further, but our core business is table and there will be no change in our $101 million Q4 revenues."
Sutton went on to say that it is unclear if news of the investigation leaked during Friday¿s trade although the share's behavior indicates it may have. It is also not clear what led to the SEC request. "We don't know exactly how this came about. Maybe a former employee or distributor or someone who is short selling the stock complained to the SEC. Many companies go through this process and we have no problem producing the documents."