The litigation, spearheaded by the law firm Hagens Berman Sobol Shapiro LLP, centers on allegations that PROCEPT incentivized hospitals to purchase Aquablation therapy handpieces in bulk to meet quarterly targets. These practices reportedly pulled future sales into the present, creating a facade of growth while leaving customers with over 10,000 units of excess inventory. The firm claims the company failed to disclose these internal sales tactics, misleading shareholders about the true demand for its technology.

The discrepancy between reality and corporate reporting surfaced in a series of earnings reports beginning in August 2025. After missing consensus estimates for handpiece sales, management eventually admitted to the inventory backlog and the subsequent termination of its discount program. By February 25, 2026, the cumulative effect of these disclosures saw PROCEPT stock plummet by $22.06 per share. Reed Kathrein, the Hagens Berman partner leading the investigation, is now examining whether the company intentionally prioritized short-term financial targets over transparent investor communication. Affected shareholders have until September 22, 2026, to apply for the role of lead plaintiff.