The lawsuit, filed by Hagens Berman Sobol Shapiro LLP, centers on the period between February 28, 2024, and February 25, 2026. Plaintiffs allege that PROCEPT incentivized customers to order handpieces for its Aquablation therapy in quantities far exceeding actual clinical demand. By offering late-quarter bulk discounts, the company reportedly pulled future revenue into the present, masking a slowdown in actual procedures.

Investors began to grasp the scale of the issue during a string of disappointing earnings reports. Following a missed forecast in August 2025, management eventually admitted in February 2026 that cumulative excess inventory had reached 10,000 units. The company subsequently eliminated the discount program, acknowledging that its previous sales tactics had effectively cannibalized future demand. Reed Kathrein, the Hagens Berman partner leading the investigation, is now examining whether the company intentionally misled shareholders to maintain the appearance of consistent growth. The firm has set a lead plaintiff deadline of September 22, 2026.